Bitcoin has been on a pretty rough patch over the last week, after dragging its feet in a narrow range between $25,000 and $26,000.
The cryptocurrency has taken a pretty rough beating from its bears and has declined below $29,000.
CoinMarketCap data shows that BTC is now trading somewhere around $26,317 and is up by nearly 2.3% over the last week.
However, what if someone told you that BTC may be ready to rally by more than 400% soon?
Do you doubt it? Let's go over a few facts.
Tom Lee, a managing partner and director of research at the investment research boutique Fundstrat Global Advisors, has predicted a potential surge in Bitcoin's value.
According to Lee, BTC is ready to rally by a massive 420% to $250,000 very soon, particularly if the US SEC approves spot BTC ETFs from Blackrock and several others.
In a recent interview with CNBC, Lee mentioned that BTC will skyrocket if these ETF applications get approved because the demand for cryptocurrency might exceed supply.
This could potentially push its price over $150,000.
Keep in mind that ETFs are not a new concept. There are several BTC ETFs available in Europe. However, the US holds a significant degree of influence over macroeconomic factors and may be a major contributor to this price surge.
The US's approval of these ETFs might also have more of an impact on Bitcoin's price, due to the country's major contribution to the trading of crypto-related ETFs.
For perspective, Eric Balchunas, senior ETF analyst at Bloomberg says that the United States presently accounts for 97.7% of the total trading activity for crypto-related ETFs worldwide.
BTC has a significant degree of influence on the crypto market.
And these ETFs also have a significant degree of influence over BTC. From this, it is safe to assume that the crypto market's performance may depend (more or less) on the approval of ETFs in the US.
According to what Lee said in the CNBC interview, the demand for Bitcoin is going to exceed its current supply, creating an enabling environment for a price explosion.
Lee's bullish outlook is also in line with predictions for the next BTC halving event, which is scheduled for April 2024.
When the halving hits, BTC will become more scarce as the next Bull run gets ushered in. And if the market has ETFs in the US as fuel, Bitcoin's price explosion may prove to be more massive than anyone anticipates.
And in the event that these ETFs do not get approved, Lee still expects a sizable price surge from Bitcoin's next halving event.
Ever since Blackrock applied, however, Bloomberg ETF experts James Seyffart and Eric Balchunas say that the likelihood of these BTC spot ETFs being authorized by the SEC is about 65%.
BTC continues to struggle to not go too far below $29,000. However, the bears are proving to be more formidable than the bulls.
Which support zones should you keep an eye out for, if BTC continues to plummet?
Crypto analyst, James V Straten seems to have an idea.
According to a recent tweet, the analyst mentioned that the cryptocurrency's support levels now sit at its daily and weekly moving averages.
These support levels, according to Starten include:
However, analyst CryptoCon also mentions in a tweet, that there isn't much to worry about because, while the market is in a temporary correction, it is still very bullish.
The analyst drew comparisons between Bitcoin's price action now, and its price action in 2015-2016, before the 2016 bull run that took BTC to $20,000.
"Looks like a healthy retest to me," the analyst says.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.