A long awaited first spot BTC ETF was finally approved by the SEC. Majority of analysts were expecting that the price of BTC would skyrocket after the final approval, but it was not what happened during the previous week. Namely, the price of BTC moved away from the $45K resistance line. This situation occurred considering that the latest push in BTC`s price occurred due to a lot of speculative deals before the final approval, which pushed the price to significantly higher grounds as of the end of the last year. In addition, it should be added that around $85million was liquidated in leveraged positions, as per available data, which supported the downward spiral during the previous week. Although it might sound a bit sarcastic at this moment, but still, analysts are in agreement that this is actually a good thing for BTC. As this coin entered further into the mainstream, its acceptance will be more widespread and its price could reach higher ground in the future. But as BTC gains more funds in its capitalization, it should act more like a “traditional” asset – which means, its volatility should be lower, from the one that the market participants used on. It is all quite positive for BTC. In addition, it should be added one important note from BlackRock`s CEO, Larry Fink, who noted in an interview with CNBC that BTC is an asset class that can hedge investor’s funds against “geopolitical risks”. Considering that Larry Fink is a CEO of the largest asset management fund in the world, his words should be carefully considered.
During the previous week the price of BTC reached the highest level at $48.720, after which it entered into reversal, ending the week at level of $42.8K. During the week the RSI reached the point of 62, but is ending the week at level of 46. The level of 50 has been breached, which indicates that the market is currently eyeing the oversold side. Moving average of 50 days continues to strongly diverge from its MA200 counterpart, without any indication of a potential slowdown.
The approval of the first BTC ETF has triggered market reaction which should be evaluated with precaution. First it should be considered that all speculative positions open during the end of the previous year are currently closed with a profit, while this move triggered liquidation of some leveraged positions. It will take a few days until the situation clears up and BTC finds a new equilibrium level. The level of $ 42K is certainly not that level, considering that the support line stands at $40K, while the next short term stop stands at $43K for BTC. In this sense, it could be expected that $43K will be tested in the coming days, and if the level sustains the pressure, then $45K will be the next target of the BTC. There is some low probability that a support line at $40K might be also tested.
During the previous week the price of BTC reached the highest level at $48.720, after which it entered into reversal, ending the week at level of $42.8K. During the week the RSI reached the point of 62, but is ending the week at level of 46. The level of 50 has been breached, which indicates that the market is currently eyeing the oversold side. Moving average of 50 days continues to strongly diverge from its MA200 counterpart, without any indication of a potential slowdown.
The approval of the first BTC ETF has triggered market reaction which should be evaluated with precaution. First it should be considered that all speculative positions open during the end of the previous year are currently closed with a profit, while this move triggered liquidation of some leveraged positions. It will take a few days until the situation clears up and BTC finds a new equilibrium level. The level of $ 42K is certainly not that level, considering that the support line stands at $40K, while the next short term stop stands at $43K for BTC. In this sense, it could be expected that $43K will be tested in the coming days, and if the level sustains the pressure, then $45K will be the next target of the BTC. There is some low probability that a support line at $40K might be also tested.
