On Friday, Bitcoin and various other cryptocurrencies experienced a decline as the anticipation for regulatory decisions on eagerly awaited crypto funds prolonged. Despite this, traders maintain a bullish outlook, optimistic that the recent surge in digital assets will persist.
Over the past 24 hours, the price of Bitcoin has fallen by 3% to $36,250, stepping back from its recent peak of nearly $38,000. This recent high marked Bitcoin’s strongest level since the crypto market faced a severe bear market in May 2022. While Bitcoin has exhibited a remarkable rally of over 30% in a few weeks, breaking free from a period of subdued crypto trading, it has encountered consistent resistance at the $38,000 threshold.
Rachel Lin, the CEO of trading platform SynFutures, commented on Bitcoin’s recent performance, stating, “Bitcoin had a slight pullback this week after reaching the $38,000 level. Currently, the $38,000 level is acting as resistance, with Bitcoin rejecting from the zone twice in two weeks. On the downside, $35,000 will likely act as the next support zone, followed by $31,500.”
Bitcoin’s notable rally, surpassing the Dow Jones Industrial Average and S&P 500, has been primarily fueled by the anticipation that regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF). Such an ETF, holding the cryptocurrency itself, is expected to bring in a new wave of investor interest, providing support to prices.
However, a significant hurdle arises as the Securities and Exchange Commission (SEC) continues to postpone decisions on spot Bitcoin ETFs. The deadline for Hashdex’s application, initially set for Friday, has been extended to January 1, 2024. Similarly, a decision on Franklin Templeton’s spot Bitcoin ETF application was also expected on Friday.
Despite these delays in what has been one of the most eagerly awaited crypto catalysts of the year, traders remain confident in Bitcoin’s momentum and foresee further gains.
Rachel Lin emphasized, “The money flow into the crypto ecosystem continues to remain strong, marking the seventh week of positive inflow. The options market remains unchanged, with $30,000 to $50,000 call options having the most open interests for November and December. Open interest call to put ratio now stands at two to one, showing a strong bullish bias.”
Looking beyond Bitcoin, Ether, the second-largest cryptocurrency, experienced a 4% drop, falling below $1,970. Other altcoins, including Cardano (down 7%) and Polygon (down 9%), also faced declines. The performance of meme coins was mixed, with Dogecoin rising by 3% and Shiba Inu shedding 2%.
