Benzinga - A pseudonymous cryptocurrency analyst CrediBull said that people have been saying that the "market is super frothy atm [at the moment], major correction incoming,” since Bitcoin (CRYPTO: BTC) was trading at $25,000.
What Happened: CrediBull observed that despite the market surge, both BTC funding rates and perpetual contract premiums have seen a significant reduction. The analyst said, "This isn’t frothy- it’s extremely healthy and increases the odds that we just keep pumping into ETF approval without much of a pullback at all."
"Be careful guys, market is super frothy atm, major correction incoming…"Been hearing this since 25k.
Meanwhile funding and perp premium have decreased drastically since this last impulse up while we have been chopping in this right range.
This isn't frothy- it's extremely… pic.twitter.com/JAxvp5SZVW
— CrediBULL Crypto (@CredibleCrypto) January 3, 2024
Another cryptocurrency analyst Ali Martinez identified a key level for Bitcoin’s increase, “With Bitcoin holding steady above $44,900, sustained buying pressure at this level might fuel a push toward $49,000.”
With #Bitcoin holding steady above $44,900, sustained buying pressure at this level might fuel a push toward $49,000. This key support holding firm is crucial for $BTC to continue the upward momentum. pic.twitter.com/9GI8EaPng4— Ali (@ali_charts) January 3, 2024
On Tuesday, Jim Cramer of CNBC flipped his stance on King crypto. “This thing is, you can’t kill [Bitcoin],” Cramer said, And the late Charlie Munger, who was so brilliant on so many things, was blind to this…"
He added, "It's a reality and it's a technological marvel. And I think people have to start recognizing that it's here to stay. The SEC has been against it almost the all time. Now that doesn't mean that every one of these [cryptocurrencies] is here to stay, but I do think that this is a remarkable comeback that was unexpected – except for for all the bulls who turned out to be right."
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Why It Matters: Not all share the unabated optimism. CryptoQuant, an on-chain metrics platform, warns of an imminent correction as the market awaits the nod for spot-based Bitcoin ETFs.
According to CryptoQuant, the approval expected between January 8 and 10, 2024, could result in traders cashing in on their positions—a move that could prompt a market pullback. “Market analysts are assigning 90% odds of Bitcoin spot ETF approval in the USA by January 8th to 10th, 2024,” CryptoQuant said.
Price Action: At the time of writing, BTC was trading at $45,143, down 1.3% on Wednesday, according to Benzinga Pro.
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