- January 13, 2024
- Posted by: [email protected]
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Bitcoin has witnessed a significant surge, surpassing the $46,000 mark, following the approval by the US Securities and Exchange Commission (SEC) of 11 spot bitcoin exchange-traded funds (ETFs) on Wednesday. The green light for these ETFs came after a fake tweet falsely claiming the SEC’s authorization of a bitcoin futures ETF caused a brief price spike on Tuesday, prompting a congressional panel to request an SEC briefing.
The approval of spot bitcoin ETFs, which track the actual price of the digital asset, is considered a substantial boost for the cryptocurrency industry. This development is anticipated to attract both institutional and retail investors to the market, with Grayscale, the largest digital asset manager, among the major beneficiaries. Grayscale transformed its flagship Grayscale Bitcoin Trust (GBTC) into a spot bitcoin ETF, a move identified by Mom of Crypto as instrumental in securing SEC approval.
Renowned author Robert Kiyosaki, famous for “Rich Dad, Poor Dad,” has expressed bullish sentiments on bitcoin, predicting a surge to $150,000 soon. Kiyosaki, advocating bitcoin as a superior hedge against inflation compared to gold or silver, announced his intention to increase his bitcoin holdings.
Amid these positive developments, the GOP-controlled House Financial Services Committee sought clarification from the SEC regarding a hoax tweet from its official X account. The misleading tweet, falsely approving Bitcoin ETFs, had an immediate impact on bitcoin’s price, highlighting the susceptibility of the market to regulatory changes and misinformation.
SEC Commissioner Hester Pierce, known as “Crypto Mom,” revealed that Grayscale’s appeal from the previous year played a crucial role in the approval of spot Bitcoin ETFs. Pierce criticized the SEC for a ten-year delay and emphasized the positive impact of ETF approval on Bitcoin’s institutional access and credibility.
Analyzing the market, the 4-hour chart indicates a bullish trend for bitcoin, trading within an upward channel. The RSI at 56 suggests a balanced market with slight bullish sentiment. The 50-day EMA at $45,014 indicates a short-term bullish trend. However, a double top pattern at $47,750, a bearish reversal signal, poses a potential downward pressure if bitcoin breaks below the neckline at $44,500.
Despite the bearish signal, the overall trend remains bullish, with bitcoin likely to test resistance at $47,743. A breach of this resistance could propel bitcoin higher, while a fall below support at $45,026 may trigger a bearish reversal, targeting the double top pattern’s neckline. The short-term forecast indicates potential for further gains if positive market sentiment prevails.
