Bitcoin surged, breaking through $45,000 and hitting $47,000, a peak unseen since April ’22. The momentum behind this surge is largely driven by speculation surrounding the potential approval of the first spot BTC exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC). Bloomberg Intelligence analysts project a whopping 95% chance of approval this week, fueling market excitement.
Among major players like Valkyrie, WisdomTree, BlackRock, Bitwise, and others, a fierce fee war has erupted, with fees being slashed to attract investors. Reductions, including ARK and 21Shares dropping from 0.8% to 0.25%, have triggered a competitive environment across the industry, promising reduced costs for potential investors.
As the SEC commissioners’ vote looms, uncertainty shrouds the decision-making process, potentially involving delegated authority. BlackRock has taken the initiative by seeding its fund with the purchase of 227.9 BTC, followed by similar actions from ARK, 21Shares, VanEck, and more, signaling their preparedness contingent on approval.
However, amidst the growing frenzy, the SEC issued a cautionary note against impulsive actions driven by FOMO (fear of missing out). Advocating for thoughtful investment choices, it urged investors to exercise caution and referred them to additional resources. Notably, bitcoin trading volume surged by approximately 100% in the past twenty hours.
Where’s Bitcoin Heading? The analysis of Bitcoin’s price movements indicates a bullish trend. The 9-day exponential moving average (EMA) is positioned below the current trading price at $44,815. However, the daily relative strength index (RSI) suggests a potential crossing into an overbought condition, standing at 65. If the price surpasses the $47,000 mark, it’s likely to continue rising, testing the resistance at $48,400. Conversely, if the price drops below $44,030, it might decline further, testing the support level at $43,750.
