The Securities and Exchange Commission (SEC) approved all the Spot Ethereum ETFs on Thursday, yet Bitcoin, and the crypto market as a whole, took another hit in price. Bitcoin is down nearly 2% on Friday so far.
Ethereum ETF approval a damp squib for $BTC price
Such a landmark event as a fairly unexpected approval of all the Spot Ethereum ETFs by the SEC on Thursday might have been the spark that ignited the crypto market into the next phase of the bull market. However, the following day bitcoin is struggling to stay above $67,000, ethereum is down more than 3%, and some of the altcoins are faring even worse.
A ‘sell the news’ event
Of course, as far as ethereum is concerned, a ‘sell the news’ event could certainly have been expected to take place. After all, $ETH had already rallied more than 28% in the last four days.
$BTC falls out of mini bull flag
Source:Coingecko/TradingView
On the very short term time frame of the hourly chart, $BTC has fallen downwards out of the small bull flag which is quite bearish. There is good support below, but the price is going to have to hold here in order to avoid going down to the next support at $64,000.
Fake out on the large $BTC bull flag
Source: Coingecko/TradingView
On the higher daily time frame the far bigger bull flag is shown. Here it should be noted that the price has returned inside the flag, signifying a fakeout. As previously stated, there is good support at this level. If the price does break further down it does have the entirety of the bull flag, which could take the price back down as far as $55,000.
$BTC omens very positive for rest of year
That said, the 4-hour, 8-hour, and 12-hour stochastic RSIs are all bottoming, and therefore it might be expected that upside momentum will soon start to push the $BTC price back up.
When all is said and done, the bull flag is still very much in play, there are good support levels below the price (including the highs of the previous 2021 bull market), and the weekly stochastic RSI is still displaying a cross up from the bottom.
Momentum is about to come back into the crypto market and it should return soon. A sea change is beginning to take place in the US political arena as regards crypto, and with the elections due to take place in November, a looser monetary policy, providing far more liquidity, could be what drives this bull market into its latter stages.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
