The SEC Tweet Scam
Tuesday’s scam tweet from the SEC X account stating that all Spot Bitcoin ETFs had been approved, threw the market into a panic. Price wicked to $48,000 before selling quickly. What next for the $BTC price in this incredible crypto journey?
A Calm Market
All was relatively calm on the crypto market. What was perceived by many to be the eve of the day when at least one Spot Bitcoin ETF would be approved, was seeing some volatility, but nothing out of the ordinary for the potential eve of such a momentous day. A pump then dump.
Price Volatility
A 2% wick to the downside just after midnight GMT, and then a longer downside wick at midday of around 3.7% were both bought back up sharply, and the price generally followed the line of resistance at $47,000. Peace was shattered suddenly at 9pm GMT when a tweet was posted on the official SEC X account stating that the regulator had approved the trading and listing of a spot Bitcoin ETF.
Immediate Market Reaction
The market reacted immediately, and the $BTC price went directly to $48,000, which was the price target for many given that this is the 0.618 fibonacci level among other factors. Interestingly, even before SEC Chairman Gary Gensler could tweet a denial of the news, the price plummeted 6.5% (equivalent to about $3,000). The question then needs to be posed, “was this a rehearsal for what might happen when the news is actually true?”
The $BTC Price Outlook
The sell orders at $48,000 seemed to do the trick of bringing the price back down. Add to this a simply massive sell wall at $50,000, and it can be imagined that $BTC would very likely be rejected when and if the expected positive announcement does eventually take place.
$BTC Still in an Uptrend
$BTC is undeniably still in an uptrend. The old adage that “the trend is your friend until the very end,” still holds true. Until the trend is broken, the price can still continue upward, and who knows, even get to that round $50,000 number.
The Shift to Ethereum
Be that as it may, the market is already possibly looking at a new dynamic. Ethereum (ETH) is currently threatening new local highs, and the ethereum ecosystem is also starting to run. Once a Spot Bitcoin ETF is approved, then surely the market will turn to the next spot ETF, which has ethereum next in line in the queue. Has the market gaze already shifted from $BTC to $ETH?
Hot Take: Uncertainty Looms Despite the Scam Tweet
Tuesday’s scam tweet from the SEC X account caused chaos in the crypto market, pushing the $BTC price to $48,000 before a sharp selloff. While the market remains in an uptrend, uncertainties persist. The tweet scam served as a test for what may happen when a genuine spot Bitcoin ETF approval is announced. Additionally, the significant sell wall at $50,000 suggests potential rejection. Meanwhile, Ethereum (ETH) is gaining traction, with the possibility of becoming the focus of the market once a Bitcoin ETF is approved. The market’s attention may have already shifted from BTC to ETH.
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