ETF Fever Fades Away

Crypto Compass 89

“The function of economic forecasting is to make astrology look respectable.” - John Kenneth Galbraith

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• The recent BTC ETF approval appears to have triggered a "sell the news" reaction in the market, leading to a temporary pullback. Despite this, the overall trend remains bullish as the Risk Signal remains low, and concerns are primarily focused on the need for a new catalyst to drive further gains.

• The $47.5k level presents a significant resistance barrier, and sustained momentum is seen as crucial for a more sustainable move beyond this point. With the introduction of a BTC ETF, the ease of institutional shorting raises potential concerns. Now that there is a BTC ETF, institutional investors can and will short much easier than they could in the past. This could become a major issue, as retail traders could be a bit blindsided by this.

Figure 1: Altcoin Signal, Risk Signal, Price Momentum and Onchain Fundamentals.