Senior ETF analyst disputes SEC rejection report, asserts strong likelihood of Bitcoin ETF approval
Bitcoin price experienced a temporary decline recently following a report from Matrixport suggesting that the Securities and Exchange Commission (SEC) could reject spot Bitcoin ETF applications. However, senior Bloomberg ETF analyst Eric Balchunas dismissed this report, stating that there is no evidence to support anything other than approval of the ETFs.
The report by Matrixport, titled “Why the SEC Will Reject the Upcoming Spot BTC ETF Applications,” caused panic among investors and led to a 6.5% decline in Bitcoin price. Nonetheless, the scheduled approval date for the ETF applications remains unchanged between January 8 and 10. Balchunas emphasized that not only he and James Seyyfart hold an optimistic outlook, but the entire crypto market shares this sentiment.
Balchunas pointed out that mainstream media, which usually reports on crypto developments only when confirmed, also holds a similar opinion. As the approval date draws closer, the likelihood of approval increases, providing a good opportunity for Bitcoin price to recover to $45,000 and potentially surge further.
From a technical analysis perspective, despite the recent correction, Bitcoin price still shows positive signs. The formation of a bullish divergence, where the price forms higher highs and higher lows, while the Relative Strength Index (RSI) forms lower lows and lower highs, indicates a bullish outcome. Additionally, Bitcoin’s ability to stay above the uptrend line, treating it as support, is a positive indicator. A breach of this line would invalidate the bullish thesis and potentially lead to a decline towards $40,000.
In conclusion, the refutation of the SEC rejection report and the positive technical indicators suggest that the chances of Bitcoin ETF approval are high. This could have a positive impact on Bitcoin price, allowing it to reclaim $45,000 and potentially continue its upward trend.