Regarding the movement of Bitcoin, experts indicate that this market behavior is due to the fact that after the launch of the ETF “instead of causing a new bullish surge and one of those wild rises associated with the cryptocurrency, the collection of profits was simply delayed” , in the words of Craig Erlam, an analyst at Oanda. Now it stands at US $ 60,000 “which leads us to wonder what magnitude of correction we are facing,” he adds.
Although bitcoin has a history of epic price spikes, the corrections can also be quite bulky. We’ve seen some support around $ 58,500, “which was notable resistance on the upside,” Erlam says, while $ 56,500 and $ 53,500 could offer more support on the downside. he adds.
In relation to ETF, Proshares Bitcoin Strategy is trading in the premarket with an uptrend (+1) trading just below the low of $ 40. Valkyrie Bitcoin Strategy, meanwhile, closed yesterday lower trading at $ 23.
Strong SEC decision
The US Securities and Exchange Commission (SEC) reportedly rejected recent Btcoin ETF applications. The event occurred one day after Valkyrie applied for a leveraged Bitcoin futures ETF and Direxion applied for a reverse fund, but the SEC appears to have rejected both. On October 28, Bloomberg ETF Senior Analyst Eric Balchunas referred to an alert from Dow Jones indicating that the SEC had shelved Valkyrie’s leveraged fund. He assured that it is likely that it will also apply to the request of the reverse fund. The SEC noted that it will allow only unlevered funds tied to the cryptocurrency, at least for now.
On October 26, Direxion, applied for a Bitcoin ETF that would allow speculators to buy futures that are short in the price of BTC. On the same day, Valkyrie applied for a leveraged BTC futures ETF that would have offered 1.25 times the asset exposure.
Another Dow Jones alert reported that the SEC only seems interested in direct futures products at this time, funds that buy contracts from the Chicago Mercantile Exchange (CME). Nonetheless, applications for Bitcoin ETFs continue to be submitted.
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