The U.S. Securities and Exchange Commission (SEC) officially approved the Bitcoin spot ETF application of Franklin Temleton, a U.S. asset management company with $1.5 trillion in assets under management, causing Bitcoin to surge more than 3% this morning. Franklin Temleton only submitted the application, and the SEC only received the application. It is unknown whether it will be approved or when it will be approved.
On August 29 this year, there was an intraday increase of more than 6% in the price of Bitcoin due to an ETF application event. Subsequently, due to the SEC's "negative response", the price of Bitcoin quickly fell back to its original level.
Compared with the ETF event on August 29, this morning's increase is very timid or cautious, with only more than three points. If the ETF is passed, it will be an extremely important event in the cryptocurrency market, because it marks the recognition of Bitcoin by the global capital market, and a massive amount of funds that are completely different from the current level will enter the Bitcoin market and the entire cryptocurrency market in various ways.
It is possible that the price of Bitcoin will fall back to around 27,800 or even 27,500 today for a period of consolidation, and then it will mainly depend on the stimulus from the news.
Today is Monday. If the SEC does not respond negatively or does not respond at all before the evening, Bitcoin will probably rise again after the European and American markets go to work. The pressure level ahead is already at 28,800. However, if the SEC makes a negative or negative statement about this ETF during the day, Bitcoin will most likely fall back to around 27,000.
In the long run, the approval of ETFs is almost a foregone conclusion, because the U.S. financial system is very complete, and it is only natural for the U.S. government to extend its regulatory hand to all aspects of the financial market, including the cryptocurrency market.
Contract investors must set stop losses and pay attention to market news to prevent negative sentiment from causing a rapid decline. Although I think this possibility is small, short-term contracts are extremely risky recently due to the frequent ups and downs of Bitcoin prices.
Spot holders do not need to pay too much attention to the ups and downs in the middle, and can patiently wait for the official approval of the ETF and the completion of the halving next year.
Technically, Bitcoin has gone out of its original oscillating structure on the daily chart, and multiple cross stars on the lower track of BOLL on the weekly chart have formed a solid bottom. The medium-term outlook is 31,000, and the long-term outlook is 43,000.
