Bitcoin (BTC) takes hit despite Ethereum ETF approval

by

As a seasoned crypto investor with a few years under my belt, I’ve seen my fair share of market swings and regulatory announcements. Thursday’s SEC approval of Spot Ethereum ETFs was a significant development that had the potential to ignite the next phase of the bull market. However, the unexpected price drop in Bitcoin and other cryptocurrencies on Friday was disheartening, to say the least.

The Securities and Exchange Commission (SEC) gave its approval to all proposed Spot Ethereum ETFs on Thursday. However, both Bitcoin‘s price and the broader cryptocurrency market experienced a decline following this announcement. As of Friday, Bitcoin has dropped by almost 2%.

Ethereum ETF approval a damp squib for $BTC price

The SEC’s unexpected approval of Spot Ethereum ETFs last Thursday could have marked the beginning of the next bull market phase for cryptocurrencies. Yet, the day after, Bitcoin has difficulty holding above $67,000, Ethereum has dropped by over 3%, and some altcoins are experiencing even greater losses.

A ‘sell the news’ event

Regarding Ethereum, it was quite predictable that a “sell the news” occurrence might transpire given that ETH had experienced a notable surge of over 28% in the previous four-day period.

$BTC falls out of mini bull flag

As a researcher studying Bitcoin’s hourly chart, I’ve noticed that we’ve seen a bearish move following a brief downturn from the small bull flag formation. Although there is solid support beneath the current price level, a hold is necessary to prevent further decline towards the next support at $64,000.

Fake out on the large $BTC bull flag

On a larger daily chart, a significantly larger bull flag formation is apparent. It’s important to mention that the price has retreated into this flag pattern, indicating a potential false breakout. Previously discussed, there is solid support at current levels. If the price continues to decline, it could trigger a sell-off and potentially push the price back down to around $55,000 – the entirety of the bull flag’s potential reach.

$BTC omens very positive for rest of year

The 4-hour, 8-hour, and 12-hour stochastic RSIs are all indicating bottoming out. Consequently, it may be reasonable to anticipate that upward momentum will soon regain strength and cause the $BTC price to rebound.

As a crypto investor, I can tell you that despite recent market fluctuations, the bull flag pattern remains a strong possibility. The price has robust support levels beneath it, including those from the highs of the 2021 bull market. Additionally, the weekly stochastic RSI is showing an encouraging cross-up from the bottom.

The crypto market’s momentum is set to make a comeback shortly. A significant shift is emerging in the US political landscape regarding cryptocurrencies, and with the upcoming elections in November, there is a strong possibility of a more lenient monetary policy being implemented. This relaxed monetary stance could inject substantial liquidity into the market, fueling the ongoing bull run.

Read More

2024-05-24 13:13