The US SEC approves Bitcoin ETFs in a landmark decision that is considered a historic milestone for the crypto space, institutionalizing Bitcoin as an asset class. Wall Street has entered the crypto space as GBTC has converted to a Bitcoin ETF and is officially trading. Having a dominant role in the ETF landscape and the potential for increased institutional investment. Conversely, some also claim they slowly gain control over the markets and, hence, may vary the prices accordingly.
Wall Street’s Bitcoin ETF went live, and after recording more than $3 billion in trading volume, Bitcoin slipped by more than 5%. So have bears outperformed the bulls and captured the market back?
Bitcoin’s price surged to a 2-year peak during trading following the approval by Wall Street’s regulatory body of the first funds for direct investment in cryptos. An impressive $52 billion in BTC was exchanged on various exchanges, recording the highest activity since March, in anticipation of a surge in demand. With this, the BTC price surged, hitting levels not seen since 2021 and also facing a significant pullback below $46,000.
Has the ETF effect faded? Was it another ‘buy the rumour and sell the news’ event?
The short-term price action displays the formation of a bearish pattern as the token fails to pierce through the upper resistance of the channel. After the Bollinger bands expanded after the squeeze, they appeared to trade sideways, indicating a drop in volatility with a significant drop in volume. Due to this, the BTC price is finding it very difficult to rise above the middle bands of the channel.
The RSI is also supporting the bearish narrative, as a minor divergence towards the lower support is observed. Therefore, the upcoming couple of hours can be extremely important for the BTC price. If the token rises and closes back above $47,000, then the token could escape from the bearish well. Besides, a bearish close below these levels may pave the way for a fresh descending trend below $45,000 in the next few days.