Bitcoin Price Faces 6% Decline, But Bullish Divergence Suggests Reversal Possible
In recent news, Bitcoin has experienced a 6% decline in price, causing concern among investors. However, there is potential for a bullish divergence that could reverse this trend. Despite this, a report from Matrixport suggests that the Securities and Exchange Commission (SEC) may reject spot BTC Exchange-Traded Fund (ETF) applications.
Matrixport, a leading cryptocurrency financial services platform, released a report titled “Why the SEC Will Reject the Upcoming Spot BTC ETF Applications.” This report triggered panic among investors, leading to a dip in the entire crypto market. The scheduled approval for the ETF applications is targeted for January 8-10, adding to the market’s anxiety.
However, not everyone is convinced by this report. A senior Bloomberg ETF analyst discredited the Matrixport report, stating that they have not heard anything indicating rejection from the SEC. Mainstream media outlets also seem to be holding an optimistic outlook on the ETF approval, further increasing the likelihood of approval.
Experts believe that the approval of a BTC ETF would have a significant impact on Bitcoin’s price, increasing the chance for it to reclaim $45,000 and rise further. The current decline in price may be temporary, as Bitcoin is satisfying crucial developments on the charts associated with a bullish outcome.
Furthermore, altcoin prices are still above their uptrend line, treating it as support. However, losing this uptrend line could invalidate the bullish thesis and send Bitcoin’s price further down, potentially towards $40,000.
Despite the recent decline, there is hope for a successful execution of the bullish divergence. If this occurs, Bitcoin could recover and trade at $45,000, bringing relief to investors who have been affected by the recent market turbulence.
In conclusion, while Bitcoin price has faced a temporary setback, there is optimism in the crypto community regarding the potential for a reversal. The Matrixport report suggesting SEC rejection has caused panic, but experts discredited it, stating that they haven’t heard anything indicating rejection. The likelihood of ETF approval remains high, increasing the chances of Bitcoin price reclaiming $45,000 and potentially rising further. Investors will be closely monitoring the upcoming ETF approval dates and subsequent market movements.
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