Bitcoin experienced another day of massive swings in a short period of time. These spikes could be precursors to some significant fundamental news releases coming from the SEC concerning a review of the most recently rejected Bitcoin ETF.
Bitcoin experienced a significant whipsaw in price action during the New York morning trade session. This was the largest price action swing that Bitcoin has experienced since December 4th. Between 1000 EST and 1045 EST, Bitcoin traded from a high of 7659.38 to a low of 7369.28. It appears that Bitcoin is respecting the upper and lower constraints provided by the Ichimoku Kinko Hyo system’s Cloud. The current weekly candlestick is the most important candlestick that Bitcoin will have traded since it broke above the Kijun-Sen in the first week of April. The top of the Cloud is below at 6726.46. The highs for Bitcoin have been limited to the VPOC (Volume Point Of Control) at 7921.44. Bitcoin faces some considerable pressure to remain above the weekly Ichimoku Cloud. By next week it will need to stay above 7920 to remain above the Cloud. That level increases dramatically by the week of December 23rd when Bitcoin will need to stay above 9036.69 to remain above the Cloud. Traders and investors will want to pay special attention to the movement of Bitcoin throughout the remainder of the month of December – significant fundamental events are brewing.
It is widely believed that continued institutional interest in Bitcoin is necessary to propel Bitcoin higher to its all-time highs. A good example of this is Bakkt’s physically settled Bitcoin futures contract. While it only had a few Bitcoin of trading volume at its launch, thedailychain reported that Bakkt had crossed over 1,741 Bitcoin contracts in a single day back in November. Volume continues to grow. Additionally, Bakkt will be releasing cash-settled futures and monthly Bitcoin options. Ultimately, the entire industry is awaiting the SEC to approve a Bitcoin ETF sometime in the future – possibly 2020. Cointelegraph reported in September 2019 that CBOE (Chicago Board Options Exchange) withdrew its VanEck/SolidX Bitcoin ETF proposal. This is not the first time a filer has pulled their application before a decision. But the SEC has rejected a number of Bitcoin ETF proposals as well – but for the first time, the SEC is actively investigating a recent rejection of a more recent ETF proposal.
On November 18th, the five commissioners of the SEC announced that they are reviewing the rejection of the Bitwise Asset Management ETF. What I find most interesting about this news is that Bitwise did not request the review. I should note that the five appointed commissioners did not do the rejection of the ETF. This is an extremely bullish even that has, surprisingly, received little press but should be on the radar of every trader and investor. Why? Because the approval of a Bitcoin ETF will be single most bullish even of the past two years. An ETF means that traditional money and fiduciary money will be able to participate in an SEC approved cryptocurrency product. Many experts feel that an approval of a Bitcoin ETF will generate such substantial momentum in the spot market of Bitcoin that it could launch Bitcoin to over the $100,000 value area.