The U.S. Securities and Exchange Commission (SEC) has postponed decisions on several spot Bitcoin exchange-traded fund (ETF) proposals for 45 days, including those from significant players like BlackRock, WisdomTree, and VanEck, until October 7.
These applications aim to introduce the first spot BTC ETF, simplifying retail investment in Bitcoin without direct purchases or wallet setups needs.
The SEC extended the comment periods for these applications, allowing more public input before a decision. Typically, the SEC takes the full 240 days provided to finalize decisions.
A recent court ruling criticized the SEC for inconsistent stances on ETF applications, particularly after it rejected Grayscale’s attempt to turn its Bitcoin Trust into an ETF. This happened despite similarities with other approved futures ETFs. The court has instructed the SEC to revisit Grayscale’s application.
This decision to postpone all applications might just be the backlash from the court ruling as now all the players are being treated equally.
Following the announcement, Bitcoin’s price saw a decline, dropping 8% to $26,000 within 24 hours, wiping out all the gains made on Tuesday, August 29.
Can it hold above $26,000?
In our previous analysis, even in presence of some bullish signs, we maintained our bearish outlook. Yesterday’s decline may have just validated our assumption that the price isn’t going further up above its July 13 high.
From July 13, when the price reached its yearly high of $31,760, an aggressive 20% decline occurred, bringintg the price to its lowest point of $25,260 on August 17. This move is projected to be either Wave 1 of a larger five-wave downside impulse or Wave A of an ABC correction of the same degree as the previous uptrend from November 21 last year to July.
This means the following increase was a corrective one as the price got a sharp rejection at the $28,000 level. Although we could see some further sideways movement in this corrective wave 2 or wave B, the price may go below $26,000 level as the wave 3 or wave C could develop.
In other words, it could hold above $26,000 but if this projection is true, the next significant stopping point for the price of Bitcoin is in $22,000 area.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.