The announcement of the Bitcoin (BTC) Spot ETF, a highly anticipated move, is slated to be made either at market close on January 5 or within the window of January 8-10, 2024. Breaking the last deadlock on the ‘cash only’ versus ‘in-kind’ debate, all ETF providers have bowed to the SEC’s insistence on a ‘cash only’ approach.
Bitcoin Spot ETF Announcement Looms, Topside Resistance Expected
In its latest broadcast, QCP Capital cautions that while the countdown to the BTC Spot ETF launch ticks away, the initial demand might fall short of the lofty market expectations. This foreshadows a potential ‘sell the news’ scenario in the second week of January.
Analysts predict topside resistance for BTC in the 45-48.5k range as the market braces for this historical development. Additionally, a retracement to the 36k levels is deemed probable before the bullish trend resumes. QCP Capital emphasizes confidence in the upward trajectory, foreseeing a resumption after a potential dip.
For those already holding Bitcoin, a strategic move suggested by QCP Capital involves selling covered calls to capitalize on elevated forwards and volatility. Simultaneously, acquiring out-of-the-money puts could be a savvy way to navigate the expected post-ETF dip.
Meanwhile, Ethereum (ETH) emerges as an interesting player in this scenario. Anticipation for an ETH Spot ETF may prompt investors to shift from BTC to ETH, creating a potential laggard play. QCP Capital notes a robust support level in the ETHBTC cross at 0.051, adding to the allure of ETH as a viable alternative.
Despite any potential delay in an ETH Spot ETF, QCP Capital anticipates a swift move by recently approved BTC Spot ETF providers to file for an ETH Spot ETF. This speculative headline, irrespective of its validity, could fuel excitement in the ETH market. However, in signing off for the year, all eyes remain fixed on the evolving narrative of Bitcoin and its imminent entry into the traditional financial landscape as the clock ticks toward the ETF announcement.
Related Reading | Ethereum’s Crucial Support At $2k: On-Chain Analysis Reveals Strong Demand