As anticipation builds for the long-awaited approval of a spot bitcoin ETF by the US Securities and Exchange Commission (SEC), a encouraging sign has emerged, further increasing the approval probability.
The SEC issued an alert to investors about “crypto asset securities,” sparking speculation that the bitcoin spot ETF may be closer than ever.
Do you see bitcoin ETF approval on the horizon?
The recent investor alert issued by the SEC has attracted widespread attention in the cryptocurrency community. Although the alert does not explicitly mention the bitcoin spot ETFsmany market participants believe it is a positive indicator of its possible approval.
The parallel between investor alert and the approval of bitcoin futures adds to the growing optimism surrounding the bitcoin spot ETF. Before approving bitcoin futures, the SEC issued similar alerts and warnings, indicating its concern and commitment to the underlying asset class.
Consequently, market watchers, including Bloomberg ETF expert Erich Balchunas, are interpreting Investors are warning about “cryptoactive securities” as a possible precursor to the approval of a bitcoin spot ETF. Balchunas stated:
Oh wow, the SEC tweets educational materials and warnings about investing in cryptocurrencies, which is something they also did before $BITO.
It is important to note that the SEC will evaluate several factorsincluding investor protection, market integrity, and compliance with existing regulations, before making a final determination on the bitcoin ETF.
However, given the growing attention and progress in cryptocurrencies, the issuance of the alert to investors signifies a step in the right direction.
Potential btc rise to $48,000
Renowned crypto analyst crypto Con has made it interesting observations regarding the current btc market dynamics that sheds light on possible next steps for the largest cryptocurrency on the market.
According to crypto Con, the money has been pouring into BTC at a pace not seen since the peak of the last cycle, with historical data indicating similar patterns on only five previous occasions.
This influx of funds has increased market sentiment and created expectations of possible further price gains. crypto Con highlights the importance of bitcoin's Money Flow Index (MFI), a technical indicator used to measure the strength and volume of funds flowing into or out of an asset, which reached a value of 91.57, which historically indicates the presence of additional bullish momentum.
Additionally, the analyst identifies the 0.618 cycle retracement of the weekly candlestick bodies as a point of interest for potential target ranges. This level aligns with other major price regions, further reinforcing its importance.
crypto Con Suggests bitcoin Price Could Probably Hit the $47,000-$48,000 Range According to These target ranges. However, the analyst also notes that significant price increases are often followed by pullbacks at this stage of the market cycle.
crypto Con highlights the possibility of a pullback after the current price surge is complete. The analyst identifies the $31,000 to $32,000 range as an area of interest for a possible pullback based on long-term data.
At the time of writing, bitcoin (btc) is trading at $43,800, showing a notable recovery in the past 24 hours following a pullback below $42,900 on Thursday.
While this price rally is encouraging, it remains uncertain whether the prevailing market dynamics possess enough strength to push bitcoin beyond its current yearly high of $44,500. There is a chance that bitcoin could experience another failed attempt to break above this level, which could subsequently result in a deeper pullback before witnessing another upward move.
Featured image from Shutterstock, chart from TradingView.com
