Bitcoin Climbs Above $4,7000 as Markets Await the ETF Approval
Cryptocurrencies were at the bottom at the start of 2023 after being on a steep downtrend for more than a year, but the sentiment improved as the environment for fiat currencies became increasingly uncertain with everything that is going on around the world. However, the main reason for the bullish crypto reversal has been the prospects of the Bitcoin ETF approval by US financial authorities, which sent BTC above $47,000 yesterday.
The price retreated to $40,000 lows in December, but moving averages held as support on the daily chart, as shown above. It was the 20 daily SMA (gray) first, then the 50 SMA (yellow) which held during the retreat and the bullish momentum resumed again.
The odds of the ETF getting approved by the SEC are close to 99%, and the community of market analysts should have put it at least at 80-90%. However, other surveys reveal that traders have lesser expectations for a BTC ETF clearance by the SEC. Perhaps when the approval becomes a fact Bitcoin will attract more attention, so we might see a rush to buy soon after the news.
A bitcoin ETF would have been a significant bullish event several years ago, it’s not that big of a deal at this moment, since markets have been expecting it for some time. The bullish move to $47,000 from below $30,000 based on an ETF has been shaky. Bitcoin trading volumes have consistently declined, reflecting waning enthusiasm, which is unlikely to be rekindled by an ETF.
However, this is positive news for Bitcoin and the crypto market in general, bringing it closer to the mainstream financial markets, which we are riding it for now. We closed our long-term Ethereum buy signal earlier last week, while we left the BTC signal open and it is approaching the take profit target.
Bitcoin BTC Live Chart
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