Bitcoin is unlikely to experience an immediate bullish surge in response to the United States Securities and Exchange Commission’s (SEC) potential approval of a spot Bitcoin exchange-traded fund (ETF), according to an analysis by trading firm QCP Capital.
Despite recent developments, Bitcoin’s price has displayed limited upside volatility.
The recent turmoil in the Bitcoin market was triggered by a hacker who falsely claimed on the SEC’s X (formerly Twitter) account that the first U.S. spot Bitcoin ETF had received official approval.
This incident was later revealed to be the result of a SIM swap attack, facilitated by the lack of two-factor authentication on the compromised account.
During this period of confusion and the subsequent correction by the SEC, the price of Bitcoin briefly approached $48,000 but failed to surpass that level.
QCP Capital interprets these events as a warning sign that even if the SEC grants official approval, it may not ignite the substantial rally that Bitcoin enthusiasts are anticipating.
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The trading firm stated that the initial response to the fake “approval” was subdued, with Bitcoin unable to break free from its resistance level.
There remains a glimmer of hope for investors, as the deadline for approving one ETF application, submitted by ARK Invest, falls on January 10th.
Historically, the SEC has approved all ETFs simultaneously, so an announcement may be imminent.
$48,000 has become a pivotal price level for Bitcoin traders, with many considering it to be a local peak.
The future direction of Bitcoin’s price remains a topic of debate, with some foreseeing continued sideways movement, while more pessimistic predictions anticipate a substantial correction to as low as $35,000 or even $12,000.
At the time of writing, BTC/USD was trading near $45,600 ahead of the Wall Street opening on January 10th.
As the crypto market eagerly awaits the SEC’s decision, the uncertainty surrounding Bitcoin’s immediate future prevails.
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