What Could Today’s Significance Be for Bitcoin ETF Approval? What Lies Ahead for BTC Price?
The US Securities and Exchange Commission (SEC) is on the verge of a significant decision regarding Bitcoin exchange-traded funds (ETFs). Historically, the SEC has rejected all ETF requests, but there is now a glimmer of hope that they may change their stance. Analysts speculate that one or more proposals could be approved as early as Friday. This possibility has generated excitement worldwide, leading to a surge in the price of Bitcoin.
Analyst Eric Krown Crypto acknowledges the uncertain nature of ETF approval, but he suggests that there is a chance it may happen today. He delves into statistical setups that could influence the outcome. Krown examines the historical data for Fridays, revealing a slightly better than 52% likelihood of positive daily closes. He explores potential market movements based on current setups, considering both bullish and bearish scenarios. Krown highlights a specific setup that has proven successful recently, resulting in profitable trades.
Krown emphasizes the significance of hidden bullish divergence on the 3-day timeframe, indicating a probable upward movement with price targets around $49,000. However, he also warns about potential bearish divergence on higher timeframes, suggesting a temporary rally. Krown stresses the importance of caution in the current market and discusses how a pullback in traditional markets could impact Bitcoin.
While recognizing the complexity of the situation, Krown leans towards a careful approach, waiting for further confirmation of market direction. He also hints at the potential impact of an ETF announcement and anticipates a significant pullback in the first quarter of 2024.
Another analyst, James Seyffart, predicts that most ETF applications will likely be approved, except for Grayscale. Seyffart believes Grayscale’s application may require additional time for approval due to its unique characteristics. He estimates a 90% chance that the SEC will give the green light to other applicants, citing the SEC’s extensive communication with the companies seeking ETFs.