BITCOIN slumped today in the early afternoon, painting a daily low just slightly above $40,000 mark. A report from Matrixport suggesting that SEC will reject all Bitcoin spot ETF applications in January and not issue final approval of the vehicle until Q2 2024 was named as the reason behind the drop. However, this was a somewhat dubious explanation given that the move on BITCOIN market occurred significantly after Matrixport release, and that Matrixport news was an opinion-piece rather than reporting based on insider information. Markets seem to have realized it as more than half of today's plunge was already erased.
Recovery move was supported by a tweet from Fox News reporter, who said that SEC will hold meetings today with exchanges - Nasdaq, CBOE and NYSE - to finalize comments on submitted Bitcoin spot ETF applications. This means that, contrary to Matrixport report, approval for Bitcoin spot ETF in January 2024 is still a possibility.
Taking a look at BITCOIN at H1 interval, we can see that price managed to climb back above the 200-hour moving average (purple line) as well as 50% retracement of today's plunge. BITCOIN tested 61.8% retracement in the $43,400 area following Fox News reported tweet, but bulls failed to break above it. BITCOIN continues to trade around 4% lower on the day but also almost 8% above daily lows.
Source: xStation5
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