Bitcoin remains well oriented as optimism on BTC ETFs increases
Tuesday saw some hesitancy in the price of bitcoin following a notable surge on Monday that sent it above the $30,000 barrier. But as of early Wednesday morning, the bitcoin market appears to be doing well once more.
Remember how the BTC/USD pair responded sharply to rumors—which proved to be untrue—that BlackRock's (NYSE: BLK) proposed spot Bitcoin ETF had been validated?
That's why Bitcoin unexpectedly surged on Monday before correcting once more. It's crucial to note, though, that bitcoin did not erase all of the gains that had been made, indicating that investors are still hopeful about a potential quick confirmation of spot Bitcoin ETFs in the US. Together.
Furthermore, there appears to be a correlation between the rebound in bitcoin on Wednesday and optimism for ETFs. It is true that Fidelity, Ark Invest, and Invesco amended their plans for spot Bitcoin ETFs recently; analysts believe that this indicates that the companies are actively working with the SEC to enhance their proposals until they fully satisfy the regulator's standards. This was revealed to us yesterday.
Recall that the SEC chose at the end of the previous week not to file an appeal against a ruling by a judge that deemed it incorrect to refuse to convert Grayscale's GBTC fund into a spot Bitcoin exchange-traded fund.
This essentially increased the possibility that the regulator will authorise Bitcoin ETFs because it seemed like it was out of reasons to continue rejecting them.
From a graphical perspective, one will recall that the surge at the beginning of the week enabled BTC/USD to cross a number of significant levels, including as the $28,000 barrier and the 100 and 200 day moving averages.
The $29,000 barrier that was reached this morning on Wednesday is currently the point of imminent opposition. The $30,000 mark should therefore be the traders' immediate goal.
Finally, the first significant support to consider on the BTC daily chart would be the region between $27,800 and $28,035, which is still home to the 100 and 200 day dma.