Bitcoin Price On The Move To $50k As Spot ETF Approval Beckons
The crypto community is eagerly awaiting the approval of the first spot Bitcoin exchange-traded funds (ETFs) in the US by the Securities and Exchange Commission (SEC). Despite recent challenges faced by cryptocurrencies, the Bitcoin price outlook suggests a potential breakout.
Investors are optimistic about the positive impact an approved ETF would have on Bitcoin price and the overall market. This could lead to increased capital flow into Bitcoin and validate the sector for Wall Street firms, potentially ushering in a bullish era.
Last Step Before Approval: Amended S-1 Forms
Spot ETF applicants have been given a deadline of January 8 to file amended S-1 forms as the final step before approval. Companies such as BlackRock, WisdomTree, Fidelity, Invesco, Ark Invest/21Shares, VanEck, and Valkyrie have all completed this filing.
The filings also include information on sponsor fees. BlackRock has settled for a sponsor fee of 0.3%, with a possibility of lower fees in the initial year or once the ETF reaches $5 billion in assets. VanEck has the lowest sponsor fee at 0.25%, while WisdomTree has the highest at 0.5%.
Potential Breakout to $50k
Bitcoin price has recently broken above $45,000, indicating an ascending triangle breakout. Based on short-term technical analysis, Bitcoin is currently in a bullish trend and may reach $50,000 before the weekend.
The Relative Strength Index (RSI) is showing a bullish outlook after crossing above 50. If there is a four-hour candle close above $45,000, traders will be more confident in the potential breakout to $50,000.
Watch Out for Support Levels
If Bitcoin fails to maintain consecutive four-hour candle closes above $45,000, there is a risk of a trend correction. Traders should pay attention to potential support areas, including the 20 Exponential Moving Average (EMA) at $44,067, the 50 EMA at $43,780, and the 200 EMA at $42,464.
Although unlikely with the imminent spot ETF approval, further price correction could find support around $42,000 and $40,000.
Hot Take: Bitcoin Price Primed for Bullish Breakout
The pending approval of spot Bitcoin ETFs in the US has generated excitement among investors and the crypto community. If approved, these ETFs could bring increased capital flow into Bitcoin and validate the sector for Wall Street firms. With recent price movements indicating a potential breakout to $50,000, the outlook for Bitcoin price remains bullish. Traders should closely monitor support levels in case of a trend correction. Overall, the imminent spot ETF approval could mark a significant milestone for Bitcoin and the broader cryptocurrency market.
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