Key Insights:
- BTC ended a four-day losing streak on Wednesday, rallying 6.49%.
- The crypto market responded positively to the news of the SEC delaying its decision on the Hashdex futures and spot ETF application.
- On Thursday, the focus will remain on the SEC as the approval window for 12 BTC-spot ETFs closes on Friday.
BTC Ends Four-Day Losing Streak as SEC Breaks ETF Silence
Bitcoin (BTC) rallied 6.49% on Wednesday, ending the session at $37,923. On Wednesday, the SEC delayed the decision on the Hashdex request to change to a BTC futures and spot ETF.
Bloomberg Intelligence ETF Analyst James Seyffart shared the SEC update, saying,
“UPDATE: There’s the delay order for Hashdex’s application to convert DEFI from a Bitcoin futures ETF to an ETF that holds both futures and spot.”
Seyffart shared his views on the market reaction to the delay, saying,
“A little surprised at how little the bitcoin price moved on that delay news. And the move has more than completely reversed since. There was one moderate candle that dropped immediately on the news from ~$37,400 to ~$36,800 and then it just resumed the uptrend.”
Managing investor expectations, Bloomberg Intelligence ETH analyst Seyffart warned,
“[…], when the SEC extends its review, it should not be read in a positive or negative light. It’s just part of the process.”
This week, the ETF community discussed the unlikelihood of the SEC approving BTC-spot ETFs in waves. The ETF community expects the SEC to approve the current batch of applications in January 2024. A batch approval would mean the broader market cannot accuse the SEC of playing kingmaker.
The approval window for the SEC to decide on 12 BTC-spot ETF applications closes on Friday.
While the ETF community expects the SEC to batch-approve the ETFs, BTC-spot ETF-related news will remain the focal point.
Failure to break above the $37,600 resistance level would leave the $36,400 support level in play. Adverse ETF-related news or SEC activity could test buyer demand.
The 14-Daily RSI reading of 68.38 suggests a BTC return to $38,000 before entering overbought territory.
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Ethereum Analysis
ETH held above the 50-day and 200-day EMAs, sending bullish price signals.
An ETH move to $2,100 would support a break above the $2,021 resistance level to target the $2,143 resistance level.
However, a fall through the $2,021 support level would bring the $1,926 support level into play.
The 14-period Daily RSI at 66.38 indicates an ETH return to $2,100 before entering overbought territory.
