BTC price bounces 5% as investor says Bitcoin ETF ‘99.9% done deal’
New updates to BlackRock’s spot Bitcoin ETF filing come as BTC price strength narrowly retains $40,000 as support.
BTC Price Records 5% Rebound Amid Investor Confidence in Bitcoin ETF Approval
Recent updates to BlackRock’s spot Bitcoin ETF filing coincide with Bitcoin (BTC) demonstrating resilience just above the $40,000 support level. On December 19, BTC, which briefly touched $44,077, rebounded above $43,000, driven by significant developments surrounding the potential launch of the first spot BTC exchange-traded fund in the United States.
Ongoing Excitement Surrounding Bitcoin ETF
Data from Cointelegraph Markets Pro and TradingView indicates a BTC price recovery, reaching local highs of $43,456 after the daily close. Despite starting the week with uncertainty, BTC/USD gained momentum, with the December 18 candle closing over 5% above the day’s low.
Subsequent news revealed that BlackRock, a key applicant for the inaugural U.S. spot Bitcoin ETF, modified its redemption policy to include BTC as an option. The latest version of BlackRock’s S1 filing with the U.S. Securities and Exchange Commission (SEC) states that in-kind redemptions of shares for underlying bitcoin will generally not be a taxable event for shareholders.
The document also introduces new regulations governing the exchange of baskets of shares for cash rather than BTC, pending regulatory approval.
Critical Point Approaching in January 2024
The SEC is slated to make final decisions on spot ETFs in early January 2024, marking a pivotal moment for Bitcoin enthusiasts. Previous delays and rejections have fueled anticipation, with traders and investors, such as Bob Loukas, expressing confidence in the imminent approval, noting, “The level of SEC engagement and back-and-forth on the bitcoin ETF tells us this is a 99.9% done deal.”
While the SEC delayed a final decision on several Ether (ETH) ETFs to May, the spotlight remains on Bitcoin’s potential upward trajectory. Traders are closely monitoring the yearly candle close and macroeconomic data releases, which could contribute to holiday season volatility.
Ongoing Analysis and Price Predictions
Traders are strategically assessing both upper and lower thresholds, with a potential dip below $40,000 still considered plausible. In a video update on December 18, Crypto Ed, from the CryptoTA trading group, anticipates a temporary decline before a final upward push, speculating on a possible BTC/USD surge to $50,000 before the close of 2023.
Analyst Matthew Hyland echoes optimism, citing a bullish divergence in Bitcoin’s relative strength index (RSI) versus price on daily timeframes, pointing toward further upside potential.
