Bitcoin ETF Approval Hopium Pushes BTC Price to $38K but Rally Fails to Sustain

Bitcoin ETF Approval Hopium Pushes BTC Price to $38K but Rally Fails to Sustain

Key Insights

  • Bitcoin's price has rallied back to above $37,000 after falling to around $34,000 earlier this week.
  • The rally is being driven by renewed hopes for the approval of a Bitcoin spot ETF in the United States.
  • The SEC has delayed its decision on several crypto ETF applications, but this did not deter Bitcoin investors.
  • Bitcoin's funding rate and open interest are both up, indicating that investors are still bullish on the cryptocurrency.
  • The only price level that could invalidate the $40,000 Bitcoin dream would be prices below $35,375.

Less than 24 hours ago, Bitcoin's price was declining rapidly, after losing its footing at around $38,000.

However, Bitcoin wasn't ready to go down that easily, especially as investors awaited the SEC's decision on a new Bitcoin spot ETF.

Investors who bet against Bitcoin were kicked out of the market, and Bitcoin is back up above $37,000 once again.

Bitcoin Repeats Last Week's Pattern

According to TradingView data, Bitcoin initially declined to about $34,000 after its rejection from $38,000.

So far, the $38,000 level has remained unbroken since Bitcoin broke below in May 2022.

At the time of writing, Bitcoin is trading around $37,118 and is hovering above a crucial support zone that analysts have identified as a key swing point.

Bitcoin's rally is not over yet
Bitcoin's rally is not over yet

According to this tweet from Material Indicators, Bitcoin's rally may not even be over yet.

"Trend Precognition indicates that this rally may not be over yet.", the Material Indicators account commented on Twitter. "$40k has come into focus, but there certainly are no guarantees BTC can reach it this week. For me, a dip below $35,375 would invalidate the TradingSignals,"

In essence, Material Indicators says that Bitcoin is bound to hit $40,000 soon. However, a break below  $35,375 would cancel out Bitcoin's bullishness and lead to further downturns.

Bitcoin ETFs Remain in Limbo

A possible catalyst for this sudden increase in Bitcoin's price may have been reports that the U.S. Securities and Exchange Commission (SEC) decided to delay its decision on several crypto ETF applications.

These applications include filings from VanEck, Valkyrie, and WisdomTree.

The SEC delays its decision
The SEC delays its decision

The crypto community has been eagerly anticipating the approval of the first Bitcoin spot ETF in the U.S.

However, the SEC continues to postpone its verdict on the various proposals.

It also cites issues such as market manipulation, scams and issues about how to protect customers of these ETF issuers as its major concerns.

This delay, however, did not seem to deter Bitcoin investors. Bitcoin has now made a retest of $38,000 and a breakout appears inevitable.

Market conditions improve for Bitcoin

Bitcoin's price isn't the only metric that went up.

According to data pulled from Coinglass, Bitcoin's finding rate continues to be bullish, despite the price uncertainty.

Bitcoin's funding rate
Bitcoin's funding rate

This increase in Bitcoin's funding rate indicates that investors have a higher interest in buying with leverage and that Bitcoin remains bullish through it all.

Bitcoin's rise in open interest
Bitcoin's rise in open interest

Bitcoin's open interest is also at a $16.7 Billion high and has never been this high since June 2022.

Coinglass data also shows that the percentage of calls (buys) on Bitcoin options open interest is largely positive.

Bitcoin options open interest
Bitcoin options open interest

In conclusion, the only price level that can invalidate the $40,000 Bitcoin dream would be prices below $35,375.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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