Bitcoin plunges: Is this the long-awaited correction?

After setting a new price record at $74,000, Bitcoin (BTC) has found itself in a plunge that has caught the attention of the crypto community. Mike Novogratz, one of the prominent members of this community, has spoken on the matter. He believes the flagship crypto will undergo a significant correction. Here are his arguments.

Spot Bitcoin ETFs at the Heart of Mike Novogratz’s Predictions

Bitcoin’s valuation has entered a downward trend. In this context, billionaire Mike Novogratz is sounding the alarm. He believes a potential correction in Bitcoin’s price trajectory is to be expected.

The expert predicts a reversal of the uptrend for the king of cryptos, especially if the outflows from exchange-traded funds (ETFs) in the spot Bitcoin market exceed the inflows.

In other words, as long as inflows into these ETFs remain positive, Bitcoin’s valuation should maintain its climb. However, a shift towards negative flows could trigger what he calls “the first real correction” of the price of the flagship cryptocurrency.

Fundamentally, Mike Novogratz believes it’s unlikely that the price of Bitcoin will fall back below the range of $50,000 to $55,000 again. Unless, he specifies, a significant event occurs. Hasn’t this already happened?

Billionaire Mike Novogratz Issues Bitcoin Alert, Says BTC To Undergo ‘First Real Correction’ if This Happenshttps://t.co/GyEqF0tq8k

— John Morgan (@johnmorganFL) March 15, 2024

Bitcoin under the $70,000 Mark

According to the latest, Bitcoin has become further entrenched in its slide. Recording a loss of 0.84% for a daily decrease of about 7.80%, the asset is trading under the $70,000 mark, around $67,500.

And the technical data is not very positive in the short term. The MVRV Pricing Bands index, which provides insight into market sentiment, suggests a potential correction that could cause Bitcoin to fall to around $61,700.

However, among the bearish signals, a bullish factor emerges. It involves significant inflows into Bitcoin ETFs. Since their inception, these financial instruments have accumulated some $31.67 billion in BTC.

This signals substantial buying power that could counter bearish prospects. Ultimately, Mike Novogratz’s warning about a potential significant correction underscores the importance of monitoring inflows into Bitcoin ETFs. These are positioned as the key determinants of the price trajectory of the queen of cryptos.