Crypto market slips on profit booking and BTC ETF delay rumours

Crypto market overview: In the past 24 hours, both BTC and ETH experienced a decline amid speculations that the SEC might delay the decision on BTC spot ETF. The current deadline for this is today ( 8-day window 9th - 17th Nov), and the final deadline is in 2024. Investors are anticipating a direct decision from the SEC in 2024.

While talking to Republic, the CoinDCX Research Team said, “Technically, BTC in a Higher Time Frame remains resilient even after the drop, holding above the 20 EMA daily and finding support from an incline trendline. ETH attempted to regain its position above the key level at $2011 but retreated below it. The sudden short-term downturn in BTC pushed down the altcoin prices as well. The declining BTC dominance suggests that if BTC continues its gradual ascent, we may witness a renewed rally in altcoins.”

Parth Chaturvedi, Investments Lead, CoinSwitch Ventures, on the other hand, labelled the dip as a price correction and indicated that if another spike in charts is registered in the coming days, we can witness Bitcoin hitting the $40,000 mark. Chaturvedi said, “BTC continued its price-correction phase as it got pulled down by 2.5 per cent in the last 24 hours and currently trading around the $36,500 mark. While approximately $21 million in long positions have been wiped as per CoinGlass data, we are in such a market condition that investors seem to have left the possibility open for both new highs or deeper price action in the red. If green price action is registered, we may even see an attempt by BTC for the $38,000-$40,000 range.”

Rajagopal Menon, Vice President, WazirX said, “Bitcoin’s new resistance at $34k levels might get corrected due to the latest market behaviour. In a typical bull run, this dip would be a sign of HODLing more tokens but that moment has not set in yet.”

“Trading volumes for the top two tokens by market cap, BTC and ETH have taken off well. BlackRock’s ETH ETF application might have swayed the market sentiment towards buying Ethereum. However, a cautionary approach still looms at large among investors,” Menon added.

Shivam Thakral, CEO, BuyUcoin shed light on the sudden liquidations of over $300 million over the last 24 hours. Thakral said, “Bitcoin slipped the $37,000 mark as the world’s largest digital asset by market cap witnessed liquidations of over $300 million over the past 24 hours. The traders book profit by liquidating their positions which resulted in a selling pressure on BTC and ETH. Bitcoin touched the $38,000 market yesterday which may have prompted traders to go for some profit booking. Market indicators are still on the positive side and market momentum is expected to sustain in the coming weeks.”

Edul Patel, CEO, Mudrex also iterated the profit booking scenario in the crypto market. Patel said, “Bitcoin's price has consolidated at $36,500 after more than $300 million in leveraged positions were liquidated over the past two days. To regain its bullish momentum, Bitcoin will need to clear the resistance at $36,900 or risk finding support around $35,800. Meanwhile, the altcoin Avalanche (AVAX) has surged by over an impressive 76 per cent in the last week, driven by JPMorgan and Apollo's demonstration of how asset managers could tokenize funds. Ethereum, on the other hand, is trading slightly below the $2,000 threshold.”

While the overall crypto market may be down by 2.2 per cent due to the market correction phase, the recent US inflation data has been more positive than expected. This has led to the shift of investor sentiment toward risk-on asset classes, cushioning the selling pressure within the crypto market.

In terms of spot BTC ETFs, the SEC has delayed its decision for an application from Hashdex. The regulator was expected to review some applications by November 17. This delay is likely to dilute strong market sentiments and push the deadline to 2024.