Crypto Market Awaits SEC's Decision on Bitcoin ETFs: Potential Impact on Leading Cryptocurrencies
Summary:
The U.S. Securities and Exchange Commission (SEC) is expected to approve one or more Bitcoin (BTC) exchange-traded fund (ETF) applications by January 10. Experts predict varied outcomes for Bitcoin's price upon the approval. A BTC ETF endorsement could significantly impact the crypto sector, even prompting the approval of Ethereum ETF applications in the U.S. Observations also reflect potential movements in crypto markets, including the S&P 500 Index, U.S. Dollar Index, Bitcoin, Ether, BNB, XRP, Solana, Cardano, Avalanche and Dogecoin.
The crypto trading community is anxiously waiting for the U.S. Securities and Exchange Commission's (SEC) anticipated endorsement of one or more Bitcoin (BTC) exchange-traded fund (ETF) applications by January 10. Speculations on BTC's price fluctuation upon approval of a BTC ETF are varied among analysts. Some predict a continued surge, while others anticipate a selloff subsequent to the news. No matter the immediate consequences on BTC's price, long-term investors are likely to view the ETF approval in a positive light. The clearance of a Bitcoin ETF can propel positivity throughout the segment, sparking anticipation for Ethereum ETF applications in the U.S. The key focus remains on whether aggressive buying of Bitcoin and altcoins will ensue in the upcoming days.
Taking a look at the S&P 500 Index (SPX), a pullback from 4,793 was recorded on December 28, suggesting profit-booking by short-term traders. The index's tug-of-war between 4,650 and 4,793 could indicate forthcoming range-bound movements.
The U.S. Dollar Index (DXY) has seen a rebound from a 101 support on December 28. However, a see-saw battle is present at the 20-day EMA.
Meanwhile, Bitcoin's price managed to rally past the $46,000 mark on January 8, invigorating investors to turn the $45,000 level from a long-term resistance to support.
Ether (ETH) has been captivated within the $2,400 to $2,100 band for quite some time, depicting uncertainty among traders.
BNB Price declined from $327 on January 5, hinting at an attempted reversal of the uptrend by the bears. Conversely, XRP took a downward dive, completing the descending triangle pattern with its close below the $0.57 support on January 6.
Solana (SOL) saw a quick bounce off the 20-day EMA ($96) on January 4, only to be instantly sold off at higher levels.
Cardano's (ADA) recovery was cut short near the 20-day EMA ($0.56) on January 4, leading to continued selling since January 5.
Avalanche (AVAX) experienced a downturn from the 20-day EMA ($38.09) on January 4, suggesting that the bears are lively at raised levels.
Finally, Dogecoin's (DOGE) inability to remain above $0.08 signaled the bears to boost their selling. However, a rise above the 20-day EMA ($0.09) could hint at a reemerging bullish momentum.
Notably, this article doesn’t offer any investment advice. It is advised to conduct individual research to better understand the potential risks associated with any investment or trading move.
Published At
1/8/2024 9:33:07 PM
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