Lately, BTC has shown strength as many expect a Bitcoin futures ETF to hit the market early next week. It closed the daily candle at $ 61,600 with double the trading volume on Coinbase and showed strong purchasing power.

Correction for BTC possible?

While the short-term price action has been very positive with a strong break above USD 52,900 in the past 2 weeks, we need to be careful as the launch of the BTC ETF approaches. The risk of a short-term pullback grows as BTC rose 58% in just a few weeks in anticipation of the event.

BTC / USDT daily chart | Source: TradingView

In the traditional market, stocks tend to sell out before or on the day the event is announced. Bitcoin is not immune to the “buy the rumor, sell the truth” model as it has seen many sell-offs, especially since El Salvador has recently seen BTC as a legal currency.

Technical fundamentals and fundamentals still favor a continuation on the upside for BTC in the medium to long term, but it’s important to keep an eye on the short-term risks.

Open interest, funding rate and leverage have all increased slightly as BTC has grown significantly over the past few weeks. While they are still well below the March through May 2021 levels, there is always the risk of a liquidation event leading to a short-term pullback, especially if the BTC ETF turns out to be a major event. Case.

Open Bitcoin Contracts, Funding Rate and Leverage | Source: TradingView

Even so, the event is likely to be good for the market structure as it makes Bitcoin’s recovery more sustainable over the long term.

In a bearish fall, the next areas of support are at $ 57,100 and $ 52,900, which were previous resistance levels so they could act as support. It is important for BTC to hold these levels, make a higher low and then regain the psychological level at USD 60,000. If so, Bitcoin is expected to hit a new ATH.

This seems the most likely outcome as the on-chain indicator shows no sign of a sell-off from long-term owners. This is a very bullish signal as they are not interested in selling BTC even at $ 60,000.

BTC miners are also maintaining their reserves, which suggests they expect higher prices later this year. The BTC balances on the centralized exchanges (CEX) have also decreased in the last few days.

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According to Cryptopotato

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