Bitcoin (BTC) experienced a steep price drop to $41,978 on Sunday, nearly a 50% decline from all-time highs. The sell-off signaled increased market volatility. However, there were also positive catalysts for Bitcoin.
Coinbase’s upcoming legal challenge of the SEC’s denial of regulatory clarity for cryptocurrencies has emboldened traders, with potentially positive impacts on prices. [ Bitcoin (BTC)]
Blackrock’s proposal for a spot Bitcoin ETF continues to be discussed closely with the SEC. Analysts give the ETF proposal a high probability of approval by January 2023. [BlackRock and Bitwise update Bitcoin ETF filings with SEC]
Several on-chain metrics point to a still-healthy Bitcoin network. Over 69% of BTC addresses have held for over a year, indicating a holder base. The Bitcoin hashrate has risen significantly, increasing network security. The exchange net flow shows a net outflow from exchanges, which could lessen selling pressure.
Bitcoin Price Outlook
BTC is currently trading at $42,375 with high volume. The technical analysis points to a bullish trend above $41,735. Key support levels to watch could signal sentiment changes. However, cryptocurrency investing remains risky and requires thorough research.