Bitcoin Climbs Higher as the SEC Looks at potential Crypto ETFs
Upon receiving news about potential engagements between cryptocurrency firms and the Securities and Exchange Commission (SEC) regarding Bitcoin-based Exchange Traded Funds (ETF), Bitcoin value rose slightly on a Thursday. The SEC chief, Gary Gensler, was heard stating the existence of eight to ten companies in line for the approval of their proposed Bitcoin ETF.
Bitcoin Trade Movement
Thursday proved to be an interesting day for Bitcoin, as the cryptocurrency managed to break its two-day streak of losses. This calculated reaction from the markets came in response to Mr. Gensler’s mention of the possibility of future spot Bitcoin ETFs.
The price of Bitcoin, BTC/USD, thrived with the news, peaking at a promising value of $28,566.75. This comes in stark comparison to its previous low of $28,174.25 during the session on Wednesday.
Boosting Bitcoin’s value over the recent floor at approximately $28,200 was the force behind Thursday’s upward price movement.
From a technical standpoint, this rebound appears to be initiated as the 14-day relative strength index (RSI) meets a support point at the figure of 63.00.
The index is now working at 64.35, located just below the successive resistance point at 65.00.
To provoke an intensification in bullish momentum, traders must first anticipate a break-in of this resistance limit in the coming hours or days.
Ethereum’s Developments
In contrast, Ethereum, another variable in the volatile crypto-market, encountered a dip for the third consecutive time. Falling to a long-established base level after what had been a continuous climbing session.
Wednesday saw a promising peak for Ethereum (ETH/USD) at the mark of $1,580.26, before it nose-dived to a lower trough of $1,543.59 on Thursday.
The 10-day moving average (depicted in red) also followed this regressive trend, extending its downward angle contrast to the 25-day (blue) trend line.
This downward impetus resulted in Ethereum flirting dangerously close with the support point at the $1,540 mark.
There’s a looming possibility of drastic fall in Ethereum value observed once previously, making the most optimistic traders anxious about a repeat scenario.
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We would love to hear your take on this crypto trade action; share your views with us in the comments section.
Frequently asked Questions
1. What is technical analysis in the context of cryptocurrency trading?
Answer: Technical analysis in cryptocurrency trading refers to the practice of analyzing historical price and volume data to predict future price movements. Traders use various tools and indicators, such as charts and patterns, to identify trends and make trading decisions.
2. How does Bitcoin’s price surge affect Ethereum?
Answer: Bitcoin’s price surge often has a positive impact on Ethereum as well. Since Ethereum is the second-largest cryptocurrency by market capitalization, it tends to follow the general sentiment of the cryptocurrency market. When Bitcoin experiences a significant price increase, it often leads to increased investor confidence and demand for other cryptocurrencies, including Ethereum.
3. What does it mean when ETFs are under SEC review?
Answer: When Exchange-Traded Funds (ETFs) are under review by the U.S. Securities and Exchange Commission (SEC), it means that the SEC is evaluating whether to approve or disapprove the proposed ETFs. The SEC’s review process involves assessing various factors, such as the ETF’s structure, investor protection measures, and compliance with securities regulations, to ensure they meet the necessary requirements before they can be listed on regulated exchanges.
4. How does technical analysis help in trading cryptocurrencies?
Answer: Technical analysis helps traders make informed decisions by studying historical price and volume data. By analyzing patterns, trends, and indicators, traders can identify potential entry and exit points, set stop-loss orders, and determine risk-reward ratios. It allows traders to develop strategies based on market sentiment and historical price movements, enhancing their ability to profit from cryptocurrency trading.
5. Which ETFs are currently under SEC review?
Answer: The specific ETFs under SEC review may vary over time, but some examples of ETFs that have been under consideration by the SEC include those related to cryptocurrencies, such as the Bitcoin ETFs proposed by various financial institutions. It’s important to stay updated with the latest news and SEC announcements to know which ETFs are currently under review.
6. Can technical analysis guarantee accurate predictions in cryptocurrency trading?
Answer: No, technical analysis cannot guarantee accurate predictions in cryptocurrency trading or any other financial market. It is a tool that provides insights and helps traders make informed decisions, but market conditions can change rapidly, and unexpected events can impact cryptocurrency prices. Traders should use technical analysis as one aspect of their overall trading strategy and consider other factors like fundamental analysis and risk management.
7. How does Ethereum’s performance compare to Bitcoin’s recent surge?
Answer: Ethereum’s performance during Bitcoin’s recent surge can vary. While Ethereum generally tends to follow the overall market sentiment, its price movement may not always mirror that of Bitcoin precisely. Factors like Ethereum-specific developments, network upgrades, and market demand for decentralized applications (dApps) on the Ethereum blockchain can influence its performance. Therefore, it is important to analyze Ethereum’s fundamentals in addition to considering Bitcoin’s price movements.