The US SEC approved the Bitcoin ETF, a landmark decision considered a historic milestone for the cryptocurrency industry, institutionalizing Bitcoin as an asset class. Wall Street enters the cryptocurrency market with GBTC converting to a Bitcoin ETF and officially trading. They are likely to dominate the ETF landscape and attract increasing institutional investment. Conversely, some argue that they will slowly gain control over the market and thus prices may vary accordingly.
Wall Street’s Bitcoin ETF was launched, and Bitcoin fell more than 5% after recording more than $3 billion in trading volume. So have the bears outpaced the bulls and taken back control of the market?
Bitcoin prices surged to their highest in two years during trading following Wall Street regulators’ approval of the first fund to invest directly in the cryptocurrency. In anticipation of the surge in demand, $52 billion worth of BTC was traded on various exchanges, marking the highest activity since March. This caused the price of BTC to surge, reaching levels not seen since 2021 and falling significantly below $46,000.
Has the ETF effect disappeared? Was it another ‘buy the rumor, sell the news’ event?
Short-term price action shows a bearish pattern forming as the token fails to break through the upper resistance of the channel. After the squeeze, the Bollinger Bands expanded and then moved sideways, indicating a significant decrease in trading volume and reduced volatility. This makes it very difficult for BTC price to rise above the middle band of the channel.
RSI also supports the downtrend, with a small difference observed towards the lower support line. Therefore, the next few hours could be very important for the BTC price. If the token rises above $47,000 and then closes, the token could break out of the bearish well. Moreover, weakness below this level could trigger a fresh decline below $45,000 in the coming days.