A big surprise for many was yesterday’s official decision to immediately accept 8 ETH ETFs from you.
Before approval, the standard haircut of lovers of large shoulders took place with the help of a stuffing about the rejection of the application for an ETF.
Nevertheless, the ETF was approved and many people probably opened positions with large leverage on this news. The only question is who now predominates in the market, shorts or longs.
To understand the current situation, let's remember how the price of Bitcoin behaved when the ETF was approved earlier this year.
🔍 What does the BTC ETF experience tell you?
The BTC ETF was approved on January 11, 2024. We remember this day very well, since at this event we opened a short, which worked successfully.
After approval, the price of Bitcoin fell for 12 days and during this time lost just over -21% of its value.
Standard fixation of positions against the background of the onset of a long-awaited event.
But something else is important here: after these 12 days of falling, Bitcoin began to grow without any pullbacks downwards by more than +91%. This growth was organic due to the injection of liquidity through BTC ETFs.
👀 You can see the full chronology of these events on the chart.
Now, in our opinion, the situation is $ETH ETF is different. People clearly didn't expect ETFs to be adopted so quickly. This means that in the current situation the saying “Buy rumors and sell facts” should not work.
Therefore, perhaps at the start of ETH ETF trading, Ethereum and alts will begin to grow, since Ethereum has always been a growth catalyst for altcoins.
📉 In the worst case, we will repeat history with $BTC ETFs will fall for 1-2 weeks. After which a new round of growth will begin without rollbacks.
Therefore, now it is important not to panic and not give up your previously taken positions.
And if the market repeats the previous scenario, then the fall should be used to increase the share of assets in the portfolio.
The crypto market now has 2 official sources of influx of large liquidity. And liquidity is essentially the only driver for the growth of any market.
🤟 Did you like the review or want to better understand cryptocurrencies and technical analysis?
✔️ Then subscribe to the channel and like
➡️#cassius_tradeLook for us on Pavel Durov’s social network. Be sure to subscribe!