Bitcoin's price has fallen roughly 10% after the approval of Bitcoin spot exchange-traded funds (ETFs) in the U.S., signaling growing "sell-the-news" sentiment. Meanwhile, technical analysis shows Bitcoin's next key support level sits near $34,850 — its current "maximum pain" target.

The cryptocurrency's 50-day moving average near $42,120 has provided support lately. But bearish divergence on Bitcoin's relative strength index hints the price may break below this level.

A drop to $34,850 would take Bitcoin to its 200-day moving average, aligning with the lower boundary of its current bullish channel. This support level also matches the coin's Q4 2022 consolidation range.

Some market commentators eye an even deeper pullback, suggesting bankers will crash Bitcoin to the $25,000-$30,000 area where many new buyers accumulated recently. As the price nears $30K, institutions may acquire BTC from weaker hands.

Not all agree the drop will be that steep. But speculation abounds on how much downside is left after the market "priced in" the ETF launch.

Bitcoin's ability to hold above its 50-day moving average will determine if more near-term upside follows. A bull pennant pattern on the daily chart points to a potential rally toward $50,000-$60,000 by March.

Yet a break below the pennant's lower trendline could open the door for bears to reach their downside targets. Volatility likely persists while the market decides Bitcoin's next direction post-ETF.