Bitcoin continues to hover around $42,000, while altcoins are seeing a surge in value as Blackrock updates its Bitcoin ETF profile.

Bitcoin and Altcoin

The price of Bitcoin (BTC) is still unable to find direction and is consolidating below a prolonged resistance level as 2023 draws to a close. With the retail market expected to retreat in the next two days, weekend volatility may lead BTC to experience its final decline in 2023 before the anticipated recovery in 2024, driven by the potential approval of the Bitcoin ETF.

Bitcoin’s price has been consolidating along an upward trendline since the first week of November, reaching its peak on December 4th when BTC broke out into the weekly supply zone ranging from $40,387 to $46,999.

A significant resistance is currently at the mid-range of the supply zone around $43,860. A weekly candle closing above this level would confirm the continuation of the uptrend.

However, from a technical perspective, Bitcoin’s price may present a final buying opportunity for investors before a potential surge in 2024 due to the ETF frenzy.

The Relative Strength Index (RSI) appears weak even as BTC has entered overbought territory, signaling a potential correction. With the ongoing trajectory of the RSI, if this momentum indicator crosses the 70 level, confirming an overbought condition and a selling opportunity for BTC, the ensuing downward momentum could break the support provided by the ascending trendline.

Furthermore, the decline could push BTC below the base of the weekly supply zone at $40,387, possibly even below the psychological level of $40,000 and test the range around $37,800.

The fear and greed index also indicate that although the sentiment is still in the greed zone, it has steadily decreased from last month to the present, dropping to 65.

These figures indicate caution in the market amid expectations of increased volatility even as the approval of BTC spot ETF approaches.

However, the bullish camp still maintains its presence in the BTC market. Evidence is the Awesome Oscillator (AO) and the MACD, both in positive territory, with the MACD still above the signal line (orange line), indicating significant upward potential.

Therefore, increasing buying pressure could drive the price of Bitcoin above the $43,860 resistance, with the potential to turn the weekly supply zone into a bullish breakout point, aiming for the upper boundary at $46,999 and testing the psychological level of $48,000. The upward momentum will be confirmed when the price breaks out and closes above the $43,860 resistance, invalidating the bearish argument.

Breaking the psychological barrier of $48,000 would pave the way for Bitcoin to rise to $50,000 or, in a more ambitious scenario, the psychological level of $60,000.

Despite BTC hovering around $42,000, the altcoin market continues to grow.

Sei (SEI) and Bitcoin SV (BSV) are the two best-performing projects of the day. SEI, a Layer-1 network utility token optimized for digital asset trading, has surged by 26% in the past 24 hours and over 55% in the week. The price of BSV has also risen above $100, recording a short-term growth of 23% and doubling in value over the past 7 days.

Other projects such as ORDI (ORDI), Tellor (TRB), Mina (MINA), Lido DAO (LDO), Kaspa (KAS), Optimism (OP), and Astar (ASTR) have generated profits of over 10%.

Ethereum (ETH) has recorded two consecutive days of closing in the red after failing to surpass $2,450 on December 28th. The second-largest market capitalization asset fell to around $2,255 before returning to around $2,300 at the current time, a decrease of over 1% compared to 24 hours ago.

New points in BlackRock’s updated Bitcoin ETF profile.

BlackRock has updated its profile with the U.S. Securities and Exchange Commission (SEC) on Friday for a proposed Bitcoin ETF in its final effort to gain regulatory approval, designating Jane Street Capital and JP Morgan Securities LLC as authorized participants.

Bloomberg Intelligence ETF research analyst James Seyffart responded to the profile:

“JP Morgan — that’s pretty funny. A step closer to launch in the coming weeks.”

JPMorgan CEO Jamie Dimon has been famously anti-crypto for years, previously stating that people should stay away from Bitcoin. More recently, in a Senate Banking Committee hearing earlier this month, he told Senator Elizabeth Warren, D-Mass., that he would shut down crypto if he were a government official.

Scott Johnsson of Van Buren Capital wrote on X:

“It seems we’re living in a funny and surreal world when Jamie Dimon’s company – which stated that crypto should be banned – will be a leading AP for a top crypto ETF.”

The authorized participants are broker-dealers who are registered and used in the creation and redemption process, which is a key focus in ongoing negotiations with the SEC.

Deadline Approaching According to analysts, BlackRock’s latest move comes as the deadline approaches in early January when the SEC could decide to approve or reject a Bitcoin ETF. Seyffart noted that if approved, it could still be a few days or weeks before the new product is actually launched.

“It’s increasingly looking like this is a done deal. Ultimately, it will require the highest levels of government to step in and stop this from being approved.”

Recent meeting notes seem to align with the cash-settled model that analysts believe the SEC is favoring. BlackRock also noted in its latest filing that trades “will be executed for cash. If approved, these trades could also take place to acquire Bitcoin.”

Price Boost According to Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, naming the authorized participants is not yet due, but BlackRock’s move is seen as a price boost.

“BlackRock adding APs to the filing is actually smart,” he said. “So if we see other S-1s without APs named, it doesn’t mean they don’t have them. But this makes BlackRock the first horse officially ready.”

Also on Friday, Valkyrie submitted an update to its proposed Bitcoin ETF to the SEC, designating Jane Street Capital and Cantor Fitzgerald as authorized participants.

Balchunas noted that Valkyrie is joining “BlackRock as the two official horses standing at the starting line.”

Meanwhile, VanEck also submitted an update to the SEC on Friday and posted a video on social media introducing the term “Born to Bitcoin,” as reported by Bitcoin Magazine.

The cryptocurrency industry has been competing for years to get a Bitcoin ETF approved by the SEC, which has yet to do so. SEC Chairman Gary Gensler said earlier this month that the agency has a “fresh look” at registration statements following recent court rulings.

A Washington DC court ruling in the summer in favor of Grayscale has been seen as a sign of approval. Three judges at the US Court of Appeals for the DC Circuit ruled in August that the SEC must reconsider Grayscale’s proposal for a Bitcoin ETF after the asset manager sued the SEC last year for rejecting its plan to convert its flagship GBTC fund into an ETF.

 

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