Bitcoin Stalls at the 50 Daily SMA After Cryptos Crash on SEC BTC ETF Rejection Rumours
With so much going on in the financial markets in 2023 and risk sentiment turning massively on and off, the crypto market benefited and turned into some sort of safe haven for international funds. Comments early last year that the SEC was going to approve a Bitcoin EFT improved the sentiment further for cryptocurrencies and they continued the climb higher until the end of the year.
The start of 2024 was very strong for digital currencies, as they resumed the uptrend in the first two days, with BTC/USD pushing above $45,000 and reaching $45,930. However, yesterday we saw a sharp reversal and a $5,000 crash in Bitcoin, which pulled other crypto coins lower with it as well. The reason for the decline was an article showing that the SEC might reject the BTC ETF.
Bitcoin Daily Chart – The 50 SMA Held As Support
Matrixport published a speculative piece by Markus Thielen, saying that the SEC will reject the BTC spot ETF later in January. However, the analysis doesn’t really have much foundation behind it. The report’s entire premise is that the SEC approvals process is “dominated by Democrats” and that “SEC Chair Gensler is not a fan of cryptocurrencies,” therefore expecting him to approve it is quite unlikely.
Yesterday we saw another piece from the same people, reporting that ‘a potential bitcoin spot ETF approval could be revealed yesterday or today, which is not true, so the previous rumour doesn’t hold much water either. The SEC has indeed been refusing such idea for a long time, claiming that because BITCOIN is mostly global and decentralized, it is more prone to market manipulation. But, the situation is different now, with the likes of BlackRock and Fidelity embracing crypto and supporting a BTC ETF.
So, the crash stopped pretty quickly yesterday, and the decline in BTC/USD stopped right at the 50 SMA (yellow) on the daily chart. This moving average acted as support back in early October, before the upside momentum picked up momentum and the 20 SMA (gray) turned into support eventually. But, now the 50 SMA comes back into play, so we are holding on to our buy Bitcoin signal.
Bitcoin BTC Live Chart
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