Bitcoin Price May Not Be Easy to Shake Even If Sec Delays the Final Three Spot BTC ETF Decisions

FXStreet
Updated Oct 19, 2023 06:24
Mitrade

Bitcoin faces the SEC once again

Bitcoin price made a splash on Monday following a rise arising from the fake report. The cryptocurrency shot up by more than 10% during the intra-day high before scaling back down to $28,500. This resulted in the market facing $86 million worth of short liquidations.


But even though the truth of the matter was revealed, the ETF saga has not come to an end. The Securities and Exchange Commission (SEC) is set to announce its decision regarding the spot ETF applications of Fidelity, VanEck and WisdomTree on October 17 (today). Based on the comments of Bloomberg ETF analyst Eric Balchunas, the approval is likely going to be delayed until January 2024. Should this happen, Bitcoin price will likely remain unaffected with a slightly bullish bias as it is trading at the moment. 


Bitcoin spot ETF deadlines

Bitcoin spot ETF Approved or Rejected deadlines, Souce: Bloomberg.


In addition, the Net Unrealized Profit/Loss (NUPL) indicator, which estimates the total paper profits/losses in Bitcoin held by investors, is highly useful in tracking investor sentiment. At the moment, the NUPL is at a two-month high following the rally from Monday, suggesting that investors are overall in profit and probably optimistic about further recovery. But it also leaves BTC vulnerable to profit-taking as well, which could result in Bitcoin price correcting.

Bitcoin NUPL

Bitcoin NUPL, Souce: Look Into Bitcoin.


Bitcoin price to see green

Bitcoin price, which is presently hovering above the $28,500 mark, has managed to flip the resistance level of $28,354 into a support floor. This level is important for BTC if it intends to rally up to $30,000.


Since the broader market sentiment is still bullish, BTC has a chance to climb further and breach $29,000. However,it should be noticed that the Relative Strength Index (RSI) suggests that the market is not too far from being overheated, and could be at risk of a correction.


BTC/USD 1-day chart

BTC/USD 1-day chart, Souce: TradingView.


Even if it corrects, Bitcoin price is likely, at most, to fall back down to $27,418, maintaining a bullish lead. However, should it lose this support as well as that of the 50, 100 and 200-day Exponential Moving Averages (EMA), the bullish thesis would be invalidated, sending the cryptocurrency below $27,000 and towards $26,483.



* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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