SEC approval of Ethereum ETFs might boost institutional, leading to a short-term price rebound.
Bitcoin is supported around $55,000 but must break the $60,000 resistance for a rally.
RSI and reversal indicators hint at potential bullish momentum.
Digital asset research firm 10x Research suggests that the impending SEC approval of Ether ETFs could trigger a price rebound.
According to the firm, six applicants for spot Ethereum ETFs recently submitted updated S-1 forms, sparking speculation of imminent approval by the SEC. This approval could increase institutional investment in Ethereum and the broader cryptocurrency market.
#Ethereum ETF Approval Nears – #Bitcoin Risks Loom👇1-12) All six applicants for spot Ethereum #ETFs have filed updated S-1 forms, signaling that #SEC approval may be imminent. This development comes in a week when crypto prices could rebound, driven by expectations of a weaker… pic.twitter.com/EgnMa2Qb3V
— 10x Research (@10x_Research) July 9, 2024
Moreover, the resulting positive sentiment and speculative buying could potentially contribute to a short-term price rebound. Additionally, market commentators expect a weaker US CPI (Consumer Price Index) report, which would benefit risk assets like cryptocurrencies, including Bitcoin.
Bitcoin has found crucial support around $55,000, often acting as a floor and providing a potential bounce point. However, to initiate a price rally, it needs to surpass the $60,000 resistance level, marked by previous highs. Another significant level to watch is $53,717, which previously acted as support.
Oversold indicators and a Relative Strength Index (RSI) reading of 38% suggest that Bitcoin may be due for a short-term rebound. An RSI below 30 typically indicates that an asset is oversold, while a reading around 38% is on the lower side but not extreme. Meanwhile, two reversal indicators have turned bullish, hinting at a possible trend change.
Furthermore, higher trading volumes at support levels indicate strong buying interest, which is necessary for a sustained rebound. Conversely, low volumes might suggest a lack of conviction among buyers. The overall momentum appears bearish but shows signs of weakening, as indicated by the RSI and other reversal indicators. If momentum turns bullish, it could support a price increase.
If the bulls prevail, BTC could break through the $60,000-$62,000 resistance zone, signaling a trend reversal. However, if Bitcoin fails to hold the $55,000 support level, it could trigger further selling, leading to a retest of lower support levels, such as $53,717.
Market participants are closely monitoring these developments, balancing anticipation with caution.
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