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Analysts at Matrixport say one of their trading signals has turned bearish for Bitcoin for the first time since August 2023. 
In a <a href="https://www.matrixport.com/institutions/research/matrix-on-target/819" target="_blank" rel="noreferrer noopener">blog post</a> on Jan. 8, the Singapore-based crypto management firm warned traders that a decline in Bitcoin’s (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>) price should be expected within the “next two weeks” given that the breakout attempt could fall short. 
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 <img loading="lazy" decoding="async" width="900" height="377" src="https://crypto.news/app/uploads/2024/01/sdljnsdijf.png" alt="Matrixport projects 7% plunge for Bitcoin within 'next two weeks' - 25" class="wp-image-14235454">
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 Bitcoin trading signal warning about price drops | Source: Matrixport
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As the crypto market <a href="https://crypto.news/spot-bitcoin-etfs-issuers-get-final-deadline-to-change-applications/" target="_blank" rel="noreferrer noopener">has reached a consensus</a> that the U.S. Securities and Exchange Commission (<a href="https://crypto.news/tag/sec/" target="_blank" rel="noreferrer noopener">SEC</a>) will approve spot Bitcoin exchange-traded funds (<a href="https://crypto.news/tag/bitcoin-etf/" target="_blank" rel="noreferrer noopener">ETFs</a>) by Jan. 10, smart money might use the approval for profit taking, analysts at Matrixport warn. 
 You might also like: <a href="https://crypto.news/better-markets-ceo-urges-sec-reject-spot-bitcoin-etfs/"> Better Markets CEO urges SEC not to approve spot Bitcoin ETFs, analysts clap back </a> 
Although leverage has been “flushed out of the market” recently and the downside is expected to be limited, the range of $36,000 – $38,000 could be retested. In January, Bitcoin’s funding rate on crypto exchanges collapsed from 66.1% down to 7.4 %, indicating that the largest cryptocurrency by market capitalization appears to be “technically vulnerable” as a sharp funding increase in early 2024 was “unsustainable,” the analysts claim. 
The warning comes just a few days after Matrixport <a href="https://crypto.news/sec-will-reject-all-bitcoin-etfs-in-january-says-matrixport/" target="_blank" rel="noreferrer noopener">said</a> in a blog report that “it might even be a very long shot to expect” that SEC Chair Gary Gensler would vote to approve Bitcoin spot ETFs. 
<blockquote class="wp-block-quote"> 
 “An ETF would certainly enable crypto overall to take off, and based on Gensler’s comments in December 2023, he still sees this industry in need of more stringent compliance. From a political perspective, there is no reason to approve a Bitcoin Spot ETF that would legitimize Bitcoin as an alternative store of value.” 
 Matrixport 
</blockquote> 
Following this statement, Bitcoin <a href="https://crypto.news/bitcoin-falls-10-in-three-hours-following-matrixport-proclamation/">quickly plunged</a> by 10% to $40,800, according to CoinGecko data. As crypto.news <a href="https://crypto.news/matrixport-case-how-news-and-rumors-impact-crypto-market/" target="_blank" rel="noreferrer noopener">reported</a>, high-profile figures in the crypto world, such as Will Clemente and Lark Davis, pointed fingers at Matrixport for initiating the sell-off, underscoring the crypto market’s sensitivity to rumors and news. 
However, Matrixport co-founder Jihan Wu later clarified that the company does not influence its reporting by analysts, indicating that the widespread reaction to the report was unexpected. 
 Read more: <a href="https://crypto.news/blackrock-plans-layoffs-spot-bitcoin-etf-approval/"> BlackRock plans layoffs amid ESG pullback and spot ETF approval </a>

Matrixport projects 7% plunge for Bitcoin within ‘next two weeks’

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