Despite Bitcoin’s recent price decline, analysts predict a possible rebound in spot Bitcoin ETF netflows.
$56,000: A Critical Level
Analyst Ki Young Ju believes that demand for Bitcoin ETFs typically increases when the cryptocurrency reaches certain support levels. Notably, new ETF buyers have an on-chain cost basis of $56,000.
If Bitcoin approaches this price point, Ju predicts a surge in spot Bitcoin ETF inflows.
Price Correction and Potential Low
Currently, Bitcoin’s price fluctuates between $62,000 and $68,000. However, Ju anticipates a potential price correction of up to 30%. Based on Bitcoin’s recent high of $73,750, this correction could lead to a price drop as low as $51,000.
Historical Bull Market Trends
Historically, bull markets have experienced price corrections of around 30%. Following this trend, Bitcoin may have reached its peak before the upcoming halving event in April.
If so, Bitcoin may not return to previous highs anytime soon and could face further price declines in the coming weeks.
