Here's Why Analyst Says 'Don't FOMO' Ahead of Bitcoin ETF Launch

The day that cryptocurrency traders have been waiting for is almost here. A BTC ETF based on ProShares futures will launch when the market opens on October 19, and analysts expect more ETF launches in the coming week.

Data from Cointelegraph Markets Pro and TradingView shows that early morning attempts by the bears to drive the price below $60,000 were well-fended off by traders, who are in a tug-of-war in the $61,000-$62,000 region at the time of writing.

While many predict the ETF launch is the fuel needed to push BTC towards the $100,000 mark, not all analysts agree, with some warning that the event could be another “buy the rumour, sell the news” event.

A higher low would be "normal" price action

One trader who isn't entirely enamored with the idea of a BTC futures ETF is anonymous Twitter user "Cry me a $COIN," who posted the following tweet, suggesting that recent BTC price action is just part of a normal price cycle.

I don't like the "ETF will/has been approved. We're going to succeed" vibe.

Don't be surprised by a higher low. It doesn't change anything, that's the beauty of it.

— cry me a $COIN (@crymeaCOIN) October 17, 2021

Based on the price path outlined in the chart above, it is possible that Bitcoin will peak below $68,000 in the coming months and then move lower to establish a higher low near $46,000.

'Ryan Cantering Clark' echoed a similar sentiment, so far "the trade has been 'bullish ETF approval' and here we are, so, what else is going to take us higher in the near term?"

Clark said:

"Everyone knows what's coming next, so I think we're going to have a deeper pullback in the short term."

FOMO buyers beware

David Lifchitz, managing partner and chief investment officer of ExoAlpha, provided a more in-depth analysis of what might come next. Lifchitz suggested that a slight pullback may be warranted "especially after Bitcoin's surge from $40,000 two weeks ago," which resulted in a 50% rally in Bitcoin.

While Lifchitz said that “prices certainly look higher in the medium term,” analysts cautioned potential buyers, saying, “The performance of these bitcoin ETFs, which track bitcoin prices based on CME futures, has been hampered by ongoing futures transaction costs. Will be lower than the spot price of Bitcoin.”

According to Lifchitz, professional traders will likely continue to use bitcoin CME futures or cryptocurrency derivatives exchanges for their trading needs, while “long-term cryptocurrency investors have the ability to trade and store bitcoin spot directly.”

Lifchitz said:

“Thus, these ETFs will likely become an opportunity for unsophisticated retail investors to easily acquire Bitcoin with their brokerage accounts, and they will not be able to obtain the full return of BTC after all fees are factored in. These ETFs will also provide opportunities for smart investors. Traders bring arbitrage opportunities."

BTC at $90,000 if classic cup-and-handle structure emerges

The last case to watch was provided by anonymous Twitter user 'Nunya Bizniz' who posted the following tweet outlining a bullish case for Bitcoin's price action.

Daily BTC:

"If" there would be a fix, maybe like this?

Huge handle.

What do you think?

— Nunya Bizniz (@Pladizow) October 18, 2021

As the chart shows, analysts believe that BTC price is likely to fall back to the $53,000 support in the near term before resuming its upward trend.

The trader believes that BTC could rise to $98,000 after the price fell back to a potential support level.

At present, the market capitalization of the entire cryptocurrency is 2.463 trillion US dollars, and the dominance rate of Bitcoin is 47.3%.