Rumors Swirl Around Spot Bitcoin ETF Approval
The cryptocurrency community is buzzing with speculation about the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Social media platforms, particularly Twitter, have become hotbeds for discussions and rumors surrounding this possibility. However, experts warn against getting too optimistic. Senior Bloomberg ETF analyst Eric Balchunas notes that while the SEC is providing final comments and issuers are preparing their necessary forms, there is no official approval yet.
Can Bitcoin Price Recover?
- There’s intense speculation on social media about the SEC approving a spot Bitcoin ETF on Friday.
- A bullish breakout from the daily channel pattern could trigger a rally.
- The intraday trading volume in Bitcoin indicates an 18.59% gain.
The technical chart shows that despite market uncertainty, the Bitcoin price is following a rising channel pattern. Over the past month, the price has rebounded multiple times from the trendlines of this pattern, indicating that traders are paying attention to it. As long as this pattern holds, the price may remain uncertain as it waits for a response from the SEC regarding spot Bitcoin ETF approval. However, if there is an upside breakout from the resistance level, it could lead to a post-breakout rally and push the price 20% higher to reach the next significant resistance at $52,000-$52,200.
Is BTC Price at Risk of Correction?
While the overall market outlook for Bitcoin is bullish, the current uncertainty and warnings from Matrixport have created speculation about a potential correction. If the price breaks below the lower trendline, selling pressure could increase and trigger a correction to $40,300, followed by $38,000 and $35,400. The Bollinger Band indicator suggests a weakening of bullish momentum, while the Relative Strength Index (RSI) slope above 50% indicates that overall market sentiment remains bullish.
Hot Take: The Fate of Spot Bitcoin ETFs
The crypto market has been highly volatile due to speculation surrounding the approval of spot Bitcoin ETFs by the SEC. While there are rumors circulating on social media, it’s important to exercise caution and not get carried away with optimism. The SEC is still in the process of reviewing and providing comments, and there is no official approval yet. The technical chart shows that the Bitcoin price is following a rising channel pattern, but until there is a breakout from the resistance level, the price may continue to fluctuate. Traders should closely monitor any developments regarding spot Bitcoin ETFs as they can significantly impact the market.
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