Bitcoin ETF May Not Trigger BTC Price Crash Above $48K – Analysis
Bitcoin (BTC) The United States Securities and Exchange Commission (SEC) is unlikely to produce a quick bull market response, warns an analysis of a Bitcoin exchange-traded fund (ETF).
In a market update on January 10, trading firm QCP Capital acknowledged the lack of BTC price volatility.
Bitcoin “failed” to break resistance.
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Appearing on the SEC's X (formerly Twitter) account, the post was the result of a so-called SIM swap attack, representatives from the platform subsequently revealed.
“We can also verify that the account did not have two-factor authentication when the account was compromised,” he added.
@SECGov We can confirm that the account was hacked and we have completed an initial investigation. According to our investigation, the compromise was not caused by a breach of X's systems, but by an unidentified individual gaining control of the phone number…
— Safety (@Safety) January 10, 2024
During the attack and following the approval by the SEC, BTC/USD was able to approach $48,000, but not beyond.
For QCP Capital, this has wider implications – even the official ride may not produce the kind of reaction Bitcoin bulls are hoping for.
“The initial response to the ‘approval' was muted as BTC was unable to trade from the resistance area,” he told Telegram subscribers.
“We take this as a warning sign that approval is largely priced in and there may not be a large rally after approval.”
QCP added that some form of closure still needs to come before the Jan. 10 deadline to approve an ETF application for ARK Invest.
“Since the Arc21 deadline is today and the SEC has historically approved all ETFs at once, it is highly likely that I will announce tonight.” He concluded.
Silver BTC price has been muted.
According to Cointelegraph, $48,000 has become the consensus level among Bitcoin traders when it is the highest level in the area.
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What happens after that is a matter of debate; Some see sideways BTC price action, and more bearishness looking for a significant correction to $35,000 or less.
Among the most telling negative predictions, the famous trader Il Capo of Crypto still sees a retreat to $12,000 for Bitcoin in the future.
BTC/USD was trading at $45,600 at the time of writing before the January 10 Wall Street open, according to data from Cointelegraph Markets Pro and TradingView.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
