ALBAWABA - Bloomberg ETF specialist Eric Balchunas anticipates that Charles Schwab, a colossal $8.5 trillion asset manager, is poised to enter the Bitcoin ETF race with a competitively priced product. This move, if materialized, could further intensify the competition in the growing ETF market. While the asset manager is reportedly yet to develop its spot Bitcoin ETF, industry experts see its potential entry as a significant development.
Crypto analyst Joe Burnett highlights a notable on-chain trend, reporting a decline of over a million Bitcoin in exchange balances since 2020. This reduction is particularly noteworthy given Bitcoin's limited supply of 21 million, bolstering the bullish case for the cryptocurrency. Additionally, the upcoming Bitcoin halving event, set to occur in approximately 80 days, is seen as a potential catalyst for the digital asset, historically leading to price surges post-halving.
A key on-chain metric reveals a decline in wallet addresses holding less than 1 BTC since Bitcoin's local top at $49,000, with signs of consolidation around the $40,000 level. Glassnode data further supports Bitcoin's bullish outlook, indicating an upward trend in its short-term holder realized price, suggesting increasing acquisition at higher prices.
In a noteworthy development, Harvest Hong Kong, one of China's largest fund companies, filed an application for a BTC Spot ETF with the Hong Kong Securities and Futures Commission on January 26. This marks the first application of its kind, adding to the growing popularity of Bitcoin's Spot ETF among traders.
On the technical analysis front, Bitcoin's price has shown resilience by staying above the $42,000 level after a weekend slump. The recovery above the psychological level of $40,000 is seen as positive, with potential resistance at $43,600 and $45,589. A breakout beyond these levels could pave the way for a recovery to $45,000. However, caution is advised, as a daily candlestick close below $40,000 could invalidate the bullish thesis, leading to a potential decline toward the support zone between $38,155 and $38,555.
