The hype around the potential approval of the first Bitcoin spot exchange-traded funds (ETFs) in the US is back and is propelling the price of the largest digital asset towards a larger breakout. Before this 2.5% upswing in the last 24 hours to $37,378, Bitcoin price corrected to $35,650.
Selling pressure overwhelmed the bulls amid the saga at Binance, the largest crypto exchange by volume. The former CEO and the founder of the company Changpeng Zhao (CZ) resigned to honour a settlement agreement with the Department of Justice (DoJ), which stipulated that he plead guilty to violating US anti-money guidelines.
CZ as he is commonly referred to also agreed not to hold any executive positions at Binance, with the exchange required to pay $4.3 billion in settlement fees. The former CEO would be allowed to retain his stake in the company.
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Bitcoin Price Jumps As The Binance Dust Settles
Bitcoin is on the verge of breaking the $38,000 resistance to extend the bullish leg above $40,000 for the first since April 2022. Optimism around the possible approval of a Bitcoin spot ETF is mainly behind the bullish thesis.
Some market participants believe that, with the uncertainty around the charges Binance has been facing against the Department of Justice (DoJ) and other US agencies, BTC could make significant headway towards the end of the year.
According to crypto analyst and investor @CryptoMichNL, the crypto market is “in a bull cycle.” His post on Twitter (now X) echoed the impact of a spot Bitcoin ETF bolstered by the confidence regarding the approval anticipated over the coming weeks.
The next run on #Altcoins is currently loading up.
The significance of a spot #Bitcoin ETF is large and given the recent news items, the odds of an approval are increasing, so coming weeks are most likely continuing the upwards momentum.
We’re in a bull cycle.
— Michaël van de Poppe (@CryptoMichNL) November 23, 2023
As momentum increases behind Bitcoin price, its path above $40,000 would be cleared. Traders are waiting for the next break above the immediate resistance at $38,000 before activating their long positions to capitalize on potential gains to $42,000 and $45,000, respectively.
The path with the least resistance, according to the Moving Average Convergence Divergence (MACD) indicator is to the upside. The buy signal confirmed around mid-October with the blue MACD line flipping above the red signal line, encourages traders to keep their active positions open if not launch more long orders.
Bitcoin price daily weekly chart | Tradingview
A correction from the seller congestion at $38,000 cannot be ruled out yet, especially with the presence of a rising wedge pattern. Failure to extend the bullish leg above $40,000 might introduce a cloud of bearish pressure, amid rising disappointments among traders and investors.
If selling pressure surges due to the need for traders to protect their capital, Bitcoin might sweep the recent support at $35,650. In case the rebound delays, further losses may follow to $33,000 before the uptrend begins.
Grayscale Updates Bitcoin Spot ETF Proposal
The largest digital asset management company, Grayscale has updated its application to covert the existing Bitcoin Trust fund, GBTC to a spot BTC ETF with the Securities and Exchange Commission (SEC).
According to Bloomberg analyst, James Seyffart, Grayscale submitted a new proposal for the intended conversion of the GBTC by changing the stock code to BTC.
Grayscale updated their #Bitcoin ETF application!
There is definitely something going on. 👀 pic.twitter.com/WbWcv7iN8a
— Mister Crypto (@misterrcrypto) November 23, 2023
Chinese crypto journalist Wu Blockchain said that the update hints at Grayscale hammering out with the SEC to ensure that the required changes are implemented ahead of the likely approval.
Bloomberg analyst James Seyffart said that Grayscale submitted a new S-3/prospectus for GBTC’s application to convert to ETF, changing the stock code GBTC to BTC. This move confirmed that Grayscale is negotiating with the SEC to make updates/changes to its product documentation…
— Wu Blockchain (@WuBlockchain) November 23, 2023
The approval of a Bitcoin spot ETF would be a game changer for the crypto industry. In addition to allowing institutional investors to buy BTC shares on a standard stock exchange, the ETF validates Bitcoin as a mature asset free of manipulation.
Investors are early waiting for the greenlighting with Bitcoin expected to rally massively ahead of the halving in April which again is expected to be extremely bullish for BTC and the rest of the market.
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