Why BlackRock Bitcoin ETF Speculations Could Lead to a 30% Price Decline

Analyst Claims Bitcoin Price Spike Confirms $20,000 Target, BlackRock CEO Disagrees

Bitcoin’s Surge to $30,000 and BlackRock ETF Rumors: The SEO-Optimized Perspective

Bitcoin made headlines when it surpassed the $30,000 mark on October 16. Rumors of the United States Securities and Exchange Commission (SEC) greenlighting BlackRock’s Spot Bitcoin ETF were credited with driving this spike.

While this price surge seems to have led to the emergence of a bearish technical pattern on Bitcoin’s daily chart, BlackRock CEO Larry Fink viewed it as a reflection of the pent-up interest in cryptocurrencies.

The Bearish Outlook Following Bitcoin ETF Rumors

Noted technical analyst Crypto Capo identified a pattern on Bitcoin’s daily chart known as the “head-and-shoulders.” This pattern, characterized by three peaks where the central peak (the “head”) is higher than the flanking peaks (the “shoulders”), often signals a potential market reversal.

Phemex

Bitcoin’s recent climb above $30,000 appears to have formed the right shoulder of this pattern. Consequently, breaching the $25,000 support level could trigger a 20% correction, potentially pushing Bitcoin’s value down to $20,000 or lower.

Nonetheless, it’s essential to clarify the catalyst behind this price surge. A recent CoinTelegraph news update incorrectly reported the SEC’s approval of the iShares Spot Bitcoin ETF, a claim refuted by Fox Business after contacting BlackRock. Recognizing the misinformation, CoinTelegraph issued a public apology.

BlackRock’s Positive Outlook on Cryptocurrency

In the midst of Bitcoin’s price volatility, BlackRock CEO Larry Fink provided his perspective. Contrary to popular belief, Fink was not privy to the rumors until later.

Fink stressed that Bitcoin’s popularity was influenced by a range of global issues and concerns about terrorism, rather than solely the ETF rumor. He highlighted the pent-up interest in cryptocurrencies and the growing demand for them worldwide.

Fink presented a nuanced view of the crypto market, suggesting that the rumor wasn’t the sole driver of the rally. He noted a trend where people turn to “flight-quality” assets during times of global unrest, whether they are treasuries, gold, or cryptocurrencies. Fink firmly believes that cryptocurrencies, like Bitcoin, will serve as a ‘flight to quality’ asset.

In the larger context, while technical patterns provide insights into potential market trends, they need to be considered alongside the broader macroeconomic environment. This includes the sentiments expressed by influential industry leaders regarding the rising demand for Bitcoin.”

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

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