BTCUSD needs a correction to grow

BTCUSD quotes are trading near the $38,000 level. Recent market changes indicate a slight decline in Bitcoin by 3%, which took place after reaching a peak of $38,413 on November 24. This decline was followed by the liquidation of short positions totaling $2 million. Such volatility often comes before key market movements, like a tug-of-war between the bulls and bears.

Expected creation of a U.S. spot Bitcoin exchange-traded fund is helping to boost inflows into digital assets for a ninth consecutive week. This is the largest increase since the cryptocurrency market went bullish at the end of 2021.

According to investment firm CoinShares, trusts and exchange-traded products drew $346 million in investments last week. With Canada and Germany contributing to 87% of the total. Only $30 million came from the U.S., indicating the country's continued low participation. The combination of rising prices and inflows lifted total assets under management to $45.3 billion, the highest in a year and a half, as noted in the asset management firm's report released on Monday.

Bitcoin products raised $312 million last week, bringing inflows to more than $1.5 billion since the beginning of the year.

Since early October, the cryptocurrency market has surged as traditional asset managers like BlackRock prepared for a spot bitcoin-ETF. This could attract even more investors. The decision on exchange-traded fund applications must be approved by the U.S. Securities and Exchange Commission.

BTCUSD quotes are forming a new uptrend on the D1 timeframe.

In terms of wave analysis, the price is forming the first ascending wave. The Relative Strength Index (RSI) (standard values) suggests a change in price direction and a transition to the second descending wave, which is reflected in divergence. A descending wave is needed to increase bullish positions.

Signal:

The short-term outlook for BTCUSD suggests selling. 

The target is at the level of 33,410.

Part of the profit should be taken near the level of 35,730.

A stop-loss could be placed at the level of 39,500.

The bearish trend is short-term, so trade volume should not exceed 2% of your balance.