Market Awaits SEC's Approval of Bitcoin Spot ETF in Early 2024 -

Reuters reports that the U.S. Securities and Exchange Commission (SEC) may inform 14 asset managers by Tuesday or Wednesday of the first week of 2024 if their applications for Spot Bitcoin Exchange-Traded Funds (ETFs) are approved. The official launch of these ETFs is expected on January 10.

Asset managers BlackRock, Valkyrie, and Van Eck submitted amended S-1 forms to the U.S. SEC by the deadline of December 29, positioning them for potential approval of their Spot Bitcoin ETFs in January 2024.

Cathie Wood, CEO of ARK Invest, anticipates that the approval of Spot Bitcoin ETFs by the U.S. SEC might lead to a short-term “sell on news” effect as investors take profits. However, she believes this impact will be brief and maintains a positive long-term outlook for Bitcoin’s price.

In December, Bitcoin miners experienced a nearly 400% increase in revenue compared to the previous year. This surge is attributed to the rising Bitcoin hash rate and mining difficulty, setting new records and indicating robust on-chain Bitcoin transactions.

Tether, the world’s largest stablecoin operator, minted an additional 1 billion USDT, which are “authorized but not issued,” This move is seen as a preparation for the increasing demand from investors in the vibrant crypto market.

The total value locked (TVL) in DeFi protocols has surged to $52 billion, reaching heights last observed before the FTX collapse in 2022. This represents a 38% increase from the previous year. Lido Finance remains the DeFi protocol with the highest TVL, exceeding $21 billion.

PancakeSwap users overwhelmingly approved (with nearly 98% of votes) a plan to reduce the supply of CAKE tokens from 750 million to 450 million. This decision aligns with a strategy to make CAKE a deflationary token, aiming for long-term financial stability.

Weekly Technical Analysis: 2-7 January 2024

Bitcoin (BTC)

BTC surged to a new high of $45,600 due to speculation around the Bitcoin ETF approval. The expectation is that the price will continue a Sidewayup trend until the official approval is announced. For short-term traders, there’s an opportunity to profit at a target price above $48,000. The Relative Strength Index (RSI) not yet hitting the overbought level suggests there’s potential for the price to climb further.

Support: 1,500,000 THB Resistance: 1,6000,000 THB

Ethereum (ETH)

ETH continues its Sidewayup trend, following Bitcoin’s price movements, despite the lack of new positive news. If it breaks through the resistance at $2,520, it could reach a target of $2,600. However, be cautious of the support level at $2,140.

Support: 78,000 THB Resistance: 85,000 THB

Arbitrum (ARB)

ARB increased by 24.55% in the past week, approaching a potential new high at 68 THB. However, it might not surpass this level on the first attempt. Short-term profit could be taken at this resistance level, with a strategy to buy again at 52 THB. The overall trend for ARB is upward.

Support: 52 THB Resistance: 68 THB

Band Protocol (BAND)

BAND saw a 23.01% increase over the past week, signaling a recovery trend towards an upward trajectory. In the short term, consider 65 THB as a buying point if the price dips, and aim for short-term profit at 100 THB. The trend will be upward if the price consistently sets new highs.

Support: 65 THB Resistance: 100 THB

Trading and Investment Considerations For The Week

The announcement of lower-than-expected U.S. economic forecasts for the third quarter has weakened the dollar, hitting new lows, which positively affects Bitcoin. This is due to the high likelihood that the U.S. Federal Reserve might reduce interest rates sooner to stimulate the economy.

This week, there are no significant economic figures to be announced. Trading volume may decrease due to the holiday season until the beginning of the new year when it is expected to pick up again.

It is anticipated that the Bitcoin Spot ETF will be approved in early January 2024 rather than at the end of 2023. This expectation keeps the market speculative until the actual approval of the ETF, which may lead to a period of speculation followed by a “Sell On Fact” event and a subsequent market correction.

Coins in the Blockchain Layer1 and Layer2 categories continue to attract speculative interest. The market is expected to keep focusing on these coins, potentially shifting towards coins in the DeFi group. It’s advisable to gradually accumulate coins in these categories that haven’t yet experienced speculative interest. For coins that have already been subject to speculation, the focus should be on short-term profit trading only.

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