The price of Bitcoin briefly broke below the $44,000 support level before quickly bouncing back. Selling pressure surfaced each time whenever buyers attempt to buy up the dip.
Bitcoin entered the month of February at the $33,000 mark. This represents a month end return of around 33% as of this writing. Pretty good if we do not consider a peak of $58,000 which would have yielded a month-to-month return of 75%, a near loss of 50% in profit.
Year to date return is around 46%. Compare this to the S&P500, up 3% YTD and NASDAQ which is only up 4%.
Large buyers maybe accumulating while aiming to flush out the weak holders. A U.S. based Bitcoin ETF maybe launching in the near future and this may create an accumulation of Bitcoin by funds and institutions at this point in time. The launch of a U.S. based Bitcoin ETF would highly likely create a massive Bitcoin FOMO among investors. Afterall, the U.S. is THE largest capital market in the world.
For traders and investors who HODL through this current correction, they should see massive upside when a U.S. based Bitcoin ETF is launched. Many in the finance industry believes it is just a matter of when. The timeline should be accelerated with the launch of the two Canadian Bitcoin ETFs.