Crypto Market Volatility Due to Fake News of US SEC Approval on Bitcoin ETFs
The crypto market has experienced significant volatility recently due to uncertainty caused by fake news regarding the approval of Bitcoin ETFs by the US Securities and Exchange Commission (SEC).
On January 9th, The @SECgov account, which was recently compromised, issued a tweet stating, “Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges. The approved Bitcoin ETFs will be subject to ongoing surveillance and compliance measures to ensure continued investor protection.”
Although the tweet was deleted shortly after it was posted, it led to a temporary surge in BTC price followed by a sharp fall. This incident highlights the potential risks of manipulation and volatility in the cryptocurrency sector, with approximately $90 million in Bitcoin positions being liquidated.
Despite the turmoil caused by this fake news, there is still speculation that the US SEC could officially approve a spot Bitcoin ETF. Analysts predict that this approval could happen as early as tomorrow or as late as this week.
During this period of uncertainty, certain cryptocurrencies like Ethereum(ETH), Arbitrum (ARB), and Lido DAO (LDO) have shown notable upticks, indicating their potential sustainability at higher levels.
Ethereum(ETH) Price Eyes Bullish Breakout Aiming for $2,680 and Beyond
Ethereum, the second-largest cryptocurrency, has been consolidating between $2,400 and $2,140 in recent weeks. However, the anticipation for spot Bitcoin ETF approvals and previous uptrends suggest a bullish sentiment for Ethereum.
Recently, the Ethereum price experienced an 11% increase in just three days, rising from $2,169 to $2,407. This surge, combined with significant whale accumulation, indicates the potential for a bullish breakout above the key resistance level of $2,400. If Ethereum can close a daily candle above this level, it could establish a strong base for further gains.
A successful breakout could lead to an 11.5% increase in the ETH price, targeting $2,680 as the next milestone. The current low Average Directional Index value reflects the recent consolidation period that has strengthened buyers.
Is Lida Dao(LDO) Price Heading to $5?
The Lido Dao coin price has reached its target of $3.87 due to an inverted head and shoulder pattern. With growing optimism about the approval of Spot Bitcoin ETFs and no signs of weakness in LDO price behavior, buyers may continue to push the price higher.
The next significant resistance for Lido Dao is at $4.05, which is about 5% higher than the current price. If a correction occurs at this level, investors can use the Fibonacci retracement tool to identify potential support levels. Historical trends suggest that the coin often finds support at the 50% or 38.2% Fibonacci levels.
A breakout above the $4 resistance level could lead to a 25% increase in the coin’s price, potentially reaching $5. The coin’s 20-EMA slope provides additional dynamic support during periodic pullbacks.
Arbitrum(ARB) Price Reversal Pattern Signals a Climb to $2.9 Target
The daily time frame chart for the Arbitrum coin reveals a major trend reversal signal with the formation of a rounding-bottom pattern. The coin broke through the $1.82 neckline resistance, indicating potential for continued recovery.
Although there was a brief false breakdown due to market volatility, buyers quickly regained control, and the coin is now trading at $1.975. If Arbitrum maintains its position above this neckline resistance, it could aim for the rounding bottom pattern’s target of $2.9, which would be a 45% increase.
However, traditional pivot levels on the daily chart suggest potential resistance at $2.07 and $2.49 during this anticipated rally.
Hot Take: Crypto Market Volatility Continues Amid Fake News of Bitcoin ETF Approval
The crypto market has experienced significant volatility recently due to fake news regarding the approval of Bitcoin ETFs by the US SEC. This uncertainty has led to fluctuations in prices, with certain cryptocurrencies like Ethereum(ETH), Arbitrum (ARB), and Lido DAO (LDO) showing notable upticks.
Ethereum’s price is eyeing a bullish breakout, with a target of $2,680 and beyond. Lida Dao(LDO) price could potentially reach $5, while Arbitrum(ARB) price shows signs of a climb to its $2.9 target.
As the market awaits official news on Bitcoin ETF approval, it’s important to stay informed and cautious amidst the volatility.
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