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Bitcoin price is observing a potential bullish divergence, suggesting the 6% decline of the day could be reversed.
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A random report from a source known as Matrixport suggested that the SEC could reject the spot BTC ETF applications.
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Senior Bloomberg ETF analyst Eric Balchunas discredited this report, saying they have “heard nothing to indicate anything but approval.“.
Bitcoin price took a hit on Thursday, resulting in the entire crypto market noting a dip. The sudden drop in price was nothing but a panicked reaction from the investors thanks to the emergence of a report from Matrixport. The publication took a negative stance about Bitcoin and price and ETF approval at first, which was soon countered by themselves, claiming BTC was headed to $50,000.
Daily Digest Market Movers: Bitcoin price crashes after Matrixport report
The report, which was also the reason for the crash, was titled Why the SEC Will Reject the Upcoming Spot BTC ETF Applications. Naturally, any report countering the bullishness of the market is bound to trigger a reaction from investors, and that is what there is to say with the 6.5% decline.
The scheduled approval date is still the same, targeted between January 8 and 10., which basically means that the creative reports suggesting otherwise are mostly noncredible. Balnchunas noted that at this point, it is not just he and James Seyyfart who are holding out an optimistic outlook but the entire crypto market.
This is because mainstream media, which does not report on developments in the crypto space until the information is cemented, is also holding a similar opinion.
As time moves forward and the likeliness of approval increases over the next few days, there is a considerable chance for the Bitcoin price to reclaim $45,000 and rise further.
Technical Analysis: Bitcoin price is open to a rally
Bitcoin price, despite the correction, is still satisfying a crucial development on the charts, which is generally associated with a bullish outcome. The Bullish divergence formed when the price formed higher highs and higher lows, while the Relative Strength Index (RSI) formed lower lows and lower highs, One good development is that despite the decline on Wednesday, the altcoin is still keeping above the uptrend line, treating it as support. Losing this line would certainly invalidate the bullish thesis and send Bitcoin price towards $40,000.
Aaryamann Shrivastava, Bitcoin price divergence suggests rally is impending; spot BTC ETF rejection report refuted. FXStreet. https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-divergence-suggests-rally-is-impending-spot-btc-etf-rejection-report-refuted-202401040345