🕤 Bitcoin gains 5%, breaking out from ascending triangle as chances for SEC approval this week rises 📈

According to news reports and Reuters sources, the U.S. Securities and Exchange Commission (SEC) may not delay Jan. 10 (next Wednesday) and approve the creation of a Bitcoin ETF later this week. Bitcoin is gaining strongly at the beginning of the week, trading up to $45,700. The regaining popularity of Solana is also doing great, recording a nearly 7% rally. The beginning of 2024 is very good for crypto and even surge of US dollar doesn't stop Bitcoin rising wave.

Will the SEC approve Bitcoin ETF?

• Reuters sources suggest that the regulators' decision could take place later today or tomorrow (January 3 or 4)
• January 10 is the deadline for decisions on ETF applications from 21 Shares and Ark Invest funds 
• The SEC must make a final decision on both by that date. A rejection of them could mean that no Bitcoin ETFs may ultimately be created
• Acceptance of both would indicate that all are likely to be approved, so the SEC may not delay the process in time
• In such a deal, an ETF from BlackRock would launch on a par with all other, 13 spot ETFs. Otherwise, the largest issuers would have to wait until March for approval
• A total of 14 applications from Wall Street institutions are awaiting decisions, including Black Rock and Fidelity
• All potential issuers met the deadlines and adjusted their applications, in accordance with SEC instructions and deadlines

Bitcoin (H1, H4 interval)

Bitcoin stopped the temporary sell-off and miners distribution and broke out of the ascending triangle pattern.

Source: xStation5

The potential range of the breakout could be around $50,000, looking at previous price reactions and the magnitude of increases of roughly $9,000 in each of the two previous bullish upward impulses observed since October. Invariably, the SMA200 average (H4 interval) proved to be strong support.

Source: xStation5

Bitcoin started 2024 with a bullish impulse, the current range of which roughly coincides with several previous price reactions. On the MACD, we see an crossover of the averages, suggesting that the overbought trend may end in a short-term correction. On the other hand, it is difficult to estimate the final market reaction to the SEC decision. The on-chain analytics platform CryptoQuant has suggested that the bottom of the correction could even turn out to be the $32,000 level and historically Bitcoin's 25/30% declines in previous bull markets have been common. Short-term, usually the most active investors are recording record unrealized gains, which already average more than 30%, illustrating that the pressure to realize gains may be significant, and it is uncertain whether inflows will be able to match the growing supply of active investors, even if ETF will be finally approved.

Source: xStation5