The renewed buzz surrounding the potential approval of the first Bitcoin spot exchange-traded funds (ETFs) in the US is driving the price of the leading digital asset toward a significant breakout. Prior to this 2.5% upswing in the past 24 hours, reaching $37,378, the price of Bitcoin experienced a correction to $35,650.
The turmoil at Binance, the largest cryptocurrency exchange by volume, added to the selling pressure, leading to a shakeup among the bulls. Changpeng Zhao (CZ), the former CEO and founder of the company, resigned as part of a settlement agreement with the Department of Justice (DoJ). This agreement required him to plead guilty to violating US anti-money guidelines.
As per the settlement terms, CZ will not hold any executive positions at Binance, and the exchange is obligated to pay $4.3 billion in settlement fees. However, CZ will retain his stake in the company.
Bitcoin’s price surges following the resolution of the Binance situation.
Bitcoin is on the brink of surpassing the $38,000 resistance, potentially extending its bullish momentum beyond $40,000 for the first time since April 2022. The optimism revolves primarily around the potential approval of a Bitcoin spot ETF.
Amid the uncertainties surrounding the legal challenges faced by Binance from the Department of Justice (DoJ) and other US agencies, some market participants speculate that Bitcoin could make substantial progress by the end of the year.
Crypto analyst and investor @CryptoMichNL, expressing confidence in the ongoing bull cycle, highlighted on Twitter (now X) the potential impact of a spot Bitcoin ETF, emphasizing the positive outlook for approval in the coming weeks.
With growing momentum propelling the price of Bitcoin, the way to surpass $40,000 appears increasingly evident. Traders are poised to initiate long positions once a breakout beyond the immediate resistance at $38,000 occurs, anticipating potential gains reaching $42,000 and $45,000, respectively.
The Moving Average Convergence Divergence (MACD) indicator suggests the path of least resistance is upward. The buy signal, confirmed around mid-October as the blue MACD line crossed above the red signal line, encourages traders to maintain their active positions or even consider initiating additional long orders.
A correction stemming from the congestion of sellers around $38,000 remains a possibility, particularly given the presence of a rising wedge pattern. Failing to extend the bullish momentum beyond $40,000 could usher in a cloud of bearish pressure, leading to growing dismay among traders and investors.
Should selling pressure intensify as traders seek to safeguard their capital, Bitcoin could breach the recent support level at $35,650. If the rebound is delayed, there is the potential for additional losses down to $33,000 before the upward trend resumes.
Grayscale revises its proposal for a Bitcoin spot exchange-traded fund (ETF).
Grayscale, the leading digital asset management company, has submitted an updated application to the Securities and Exchange Commission (SEC) for the conversion of its existing Bitcoin Trust fund, GBTC, into a spot Bitcoin exchange-traded fund (ETF).
Bloomberg analyst James Seyffart reported that Grayscale filed a new proposal, seeking to convert GBTC by changing the stock code to BTC. This update has sparked speculation, with Chinese crypto journalist Wu Blockchain suggesting that it indicates ongoing negotiations between Grayscale and the SEC to implement necessary changes for potential approval.
The approval of a Bitcoin spot ETF holds significant implications for the crypto industry. Beyond enabling institutional investors to purchase BTC shares on a standard stock exchange, the ETF would validate Bitcoin as a mature asset, free from manipulation.
Investors are eagerly anticipating approval, with expectations of a substantial Bitcoin rally leading up to the halving in April. This event is anticipated to bring significant bullish momentum not only to BTC but also to the broader market.
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