Analyst Crypto Jebb has opened up about the reason behind the major drop in Bitcoin’s value over the last 24 hours, attributing it to the filling of the Bitcoin CME Futures Gap. While some may believe that this marks the end of the drop, Jebb argues otherwise, hinting the potential for further decline.
Bitcoin experienced an impressive 120-day rally, soaring from $25,000 to $49,000, primarily fueled by the excitement surrounding the launch of Bitcoin exchange-traded funds (ETFs). However, since their introduction about two weeks ago, Bitcoin has entered a downtrend.
Jebb points out that the initial support level was quickly breached, leading to a sharp decline back to $44,000 immediately after trading commenced. Predictions were made for a potential drop to $32,500. The size of the previous rally is a crucial factor in Jebb’s analysis, suggesting that larger rallies often precede more substantial drops. With Bitcoin’s $24,000 rally, a 50% correction could result in a $12,000 drop, bringing Bitcoin to approximately $37,000. At the time of writing, Bitcoin is trading at $39,700 levels.
Jebb points to various indicators supporting his bearish outlook, such as the Fear and Greed Index, which has not fully reset and remains above 50. Additionally, both the three-day and weekly chart indicators like MACD and RSI are signaling strong bearish sentiment.
Also Read: Breaking Down the Ethereum ETF Approval Roadmap with Finance Expert Scott Johnsson
The recent shift of Bitcoin from the GBTC trust to exchanges, influenced by the introduction of ETFs and associated fees, has added significant sell pressure. Jebb notes that many bulls, especially those holding the GBTC trust, are now taking profits.
The analysis extends beyond Bitcoin, anticipating potential drops in various altcoins. Jebb suggests that Ethereum could dip to $1,800, Solana to $48, and Cardano to around $0.40 in the coming bearish trend. Despite the current bearish outlook, Jebb remains optimistic about a future market rally in 2024 and 2025.
