Bitcoin's Rocky Road Ahead: Analyst Warns Of Post-ETF Price Plunge

A crypto specialist, known by the pseudonym The Flow Horse, has recently voiced concerns about the imminent future of Bitcoin BTC/USD.

What Happened: The analyst anticipates a downward trend for Bitcoin in the upcoming period. In a post on X, The Flow Horse posits that the initial excitement over the anticipated approval of a spot Bitcoin exchange-traded fund (ETF) might temporarily boost Bitcoin's price.

It could be today, it could be next week, but the transition over the last few days with $BTC is obvious.

An ETF announcement will probably cause a news spike, but there is less spot support, leaving most of the aggression on part of leverage buyers.

There are probably larger…

— HORSE (@TheFlowHorse) December 12, 2023

However, this analyst predicts a rapid decline following this rise and says that larger washouts are probably coming.

The Flow Horse warns that this speculative nature could lead to significant market fluctuations, especially after the ETF decision.

The verdict from the U.S. Securities and Exchange Commission on the spot Bitcoin ETF applications is expected by Jan. 10, 2024.

Also Read: Bitcoin Primed To Explode By Over 400%, Says Crypto Analyst

The Flow Horse outlines two potential outcomes regarding Bitcoin's price trajectory around the ETF announcement. One possibility is a decrease in Bitcoin's value before the announcement, followed by a more pronounced decline. Alternatively, the price might stabilize until the announcement, then briefly rise before falling.

Just some thoughts this morning.

Every time Bitcoin pops up someone offloads.

So, either BTC starts selling into the announcement this week and then sells even harder post announcement, or we trade flat til then and pop on announcement and then sell off.

Either way, lower BTC…

— HORSE (@TheFlowHorse) December 28, 2023

Regardless of the scenario, the analyst anticipates a Bitcoin price downturn following the potential approval of an ETF.

At the time of writing, Bitcoin was trading at $42.193, down 3.6% in the last seven days. 

This impending ETF decision is keenly awaited by the market, as it could significantly influence Bitcoin's direction in early 2024.

Now Read: Bitcoin On The Cusp Of 'Final Correction,' Says Crypto Analyst

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