Bitcoin Unlikely to Trigger Quick Bull Market Despite Possible U.S. ETF Approval, Analysis Says
Summary:
The abrupt bull market for Bitcoin (BTC) is unlikely in response to the U.S. ETF approval, as per the analysis by trading firm QCP Capital. This emerges amid false news of the first U.S. Bitcoin exchange-traded fund (ETF) approval that prompted temporary BTC price volatility but failed to breach its resistance. The report further emphasizes that even a genuine ETF approval may not incite the anticipated market response, citing muted reaction to the false 'approval' as a possible indicator. Despite this, a resolution for an ETF application from ARK Invest is expected, as the deadline expires. Notably, future BTC price trends remain a matter of debate among traders.
The possibility of Bitcoin (BTC) sparking an immediate bull market in response to the U.S. ETF approval is doubtful, according to recent analysis. In a market overview shared on January 10, trading company QCP Capital projected a lack of significant BTC price volatility. Bitcoin hit a hurdle unable to break the resistance in the light of false approval news of the inaugural U.S. spot Bitcoin exchange-traded fund (ETF), propagated by a cybercriminal.
The false news originated from the account of the regulator, the Securities and Exchange Commission (SEC) on X (previously known as Twitter). The misinformation came out as a result of a SIM swap attack, eventually disclosed by platform representatives. They also confirmed that at the time of account breach, two-factor authentication was not enabled.
The breach of the @SECGov account was confirmed and an initial investigation has been completed. As per the inquiry, the violation took place not because of a lapse on X's systems, but due to an unknown individual gaining control over a phone number - X's safety team reported on January 10, 2024.
In the aftermath of the false announcement and its eventual retraction by SEC, BTC/USD managed to climb towards $48,000, but didn't go beyond. According to QCP Capital, this situation has broader impacts — even a real approval may not elicit the reaction from Bitcoin bulls that they are anticipating.
"The initial response to the 'approval' was tepid, with BTC failing to breach the resistance zone," QCP Capital revealed to its Telegram followers. "We interpret this as an alert that the approval has likely been factored into the price, and a substantial rally might not follow the approval."
Even though the deadline for approving an ETF application from ARK Invest was January 10, QCP asserted that a resolution was likely to be reached. "Given that Ark21's deadline ends today and the SEC traditionally approves all ETFs simultaneously, the likelihood of an announcement today is high," the company stated.
As reported by Cointelegraph, $48,000 has emerged as the common level among Bitcoin traders for a local peak. However, predicting the trend beyond this point is split — some anticipate additional sideways BTC price movement, while more pessimistic projections call for a substantial correction to around $35,000 or potentially less.
One of the most assertive forecasts predicting a dip belongs to infamous trader Il Capo of Crypto, who envisions Bitcoin's value dropping to as low as $12,000 in the future. As of the time of writing, prior to the Wall Street opening on January 10, BTC/USD was trading close to $45,600, according to data from Cointelegraph Markets Pro and TradingView.
The assertion of trading trends or financial advice is not intended in this article. Investing and trading carry inherent risks, and individuals are advised to perform their own research before making any financial decisions.
Published At
1/10/2024 1:02:22 PM
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