Analysts remain optimistic about Bitcoin in the long term, but also agree that the newly launched Bitcoin ETF is a game changer.

As usual, Bitcoin is cooling down a bit after hitting an all-time high (ATH) due to profit-taking, consolidation, and the uncertainty of cautious traders about opening new positions at record highs. This seems to be exactly what is happening this week as Bitcoin price struggles to hold $ 60,000 as support.

BTC / USDT – 4 hour chart | Source: TradingView

All in all, most analysts still hold the view of Bitcoin’s macro-bullish performance to the point where cult analysts like PlanB, Willy Woo and others claim that the second leg of the bull market was confirmed last week at $ 67,000 .

Here’s what analysts have to say about the next stop for Bitcoin, along with some glimpses of the greater market momentum that is currently unfolding.

Bitcoin ETF has “completely changed the market structure”

All the hype about the Bitcoin price in recent weeks can be traced back to the introduction of a Bitcoin ETF. For years, analysts believed that the approval of an ETF would give institutional investors a new market entry and officially consolidate the “mainstream” status of Bitcoin.

Now that two Bitcoin ETFs based on Bitcoin futures have hit the market, many companies are rushing to propose new ETFs, including Valkyrie’s leveraged ETF profile and Direxion’s inverse Bitcoin ETF, the short bitcoin speculator enables.

According to Ben Lilly, market analyst and co-founder of Jarvis Labs, the advent of these options ETFs “completely changed the structure of the market” as there are now three derivatives on the market: ETFs and options on ProShares Bitcoin Strategy ETF (BITO). “

“This will create a lot of arbitrage opportunities in the market that already exist with CME. This discrepancy will decrease over time as more tables are assigned to Bitcoin strategies. Indeed, volatility will decrease as with any volatility more capital is allocated as part of different strategies. “

According to Lilly, the introduction of the Bitcoin ETF shows that more capital is being brought in through multiple forms of exposure to Bitcoin. He also notes that this process takes time and that arbitrage can go on until this new balance is struck.

Analysts expect an intense battle between bulls and bears

One topic that hasn’t received much attention in the Bitcoin ETF implementation landscape is how the method by which these products determine the price of BTC affects the price in the spot market as well as the spread.

According to David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha, the premiums and discounts applied to these products are likely to result in larger spreads between any individual Bitcoin ETF and the price in the underlying spot market as these other contracts also carry a premium / Discount, with the trend becoming broader the longer the contract term.

“On top of that there are the costs of constantly introducing futures contracts from month to month, which over time will also affect the value of the ETF relative to the spot market. However, the spot market value of Bitcoin is simply correlated with it! “

Pointing out that Bitcoin was rejected for $ 63,000, Lifchitz noted that “the fight between the cops and the bears here is very intense”.

“Earlier attempts by bears to lower Bitcoin have been reluctant, only pushing the price down to $ 58,000 before the bulls regain control … in support of the next leg.”

Expect a withdrawal towards $ 50,000

Independent market analyst Ryan Cantering Clark made a similar statement, explaining why he is currently selling Bitcoin.

“The market is pretty tough right now. All activities take place in smaller projects, and the failure of BTC and ETH at ATH is like sending a canary to explore a coal mine. This market tends to be Fomo driven and the price drops below its own weight rather than a higher range. All BTC are gone now. “

In a follow-up tweet, Clark Tick Lower support areas for observation and good entry points can be offered.

“If we don’t hold $ 58,000, we could fall back to $ 50,000. So I’ll probably get back in there, or at a higher level. If the lever can be removed from the system without the above conditions, great. That is my main concern at the moment. “

The total crypto market cap is currently $ 2,494 billion and the dominance of bitcoin is 44.5%.

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