Bitcoin Price In The Limelight, Gearing Up For $50k Ahead of Spot BTC ETF Approval?

The crypto community is breathlessly waiting for the imminent approval of the first spot Bitcoin exchange-traded funds (ETFs) in the US by the Securities and Exchange Commission (SEC). Although cryptos faced intense headwinds over the weekend, the outlook from the Bitcoin price perspective elucidates the likelihood of a massive breakout.

Bitcoin Price On The Move To $50k As Spot ETF Approval Beckons

Investors are looking forward to the positive impact the ETF would have on Bitcoin price and across the board. Increased capital flow into Bitcoin and the validation of the sector to firms on Wall Street could usher in a commendable bullish era.

Meanwhile, the SEC has given spot ETF applicants until Monday, January 8 to file amended S-1 forms as the last step ahead of the greenlighting. Companies that have made this last filing include Black Rock, WisdomTree, Fidelity, Invesco, Ark Invest/21Shares, VanEck, and Valkyrie.

The operators of the ETFs also included in the filings their sponsor fees. BlackRock settled for 0.3% in sponsor fees but investors can expect lower levels as far as 0.2% in the initial year, or until the ETF crosses the $5 billion in assets milestone.

VanEck boasts the lowest sponsor fee at 0.25%, while WisdomTree takes the top spot for the highest at 0.5%, according to Bloomberg’s ETF analyst Eric Balchunas on X.

Bitcoin price has just crossed above $45,000 in the wake of a clear ascending triangle breakout. Based on the short-term technical structure, the largest cryptocurrency is in the bulls’ hands and might close the gap to $50,000 before the weekend.

The Relative Strength Index (RSI) exhibits a bullish outlook after regaining ground above the midline (50) in the neutral zone. With a four-hour candle close above $45,000, traders would be less worried about Bitcoin retreating and more confident in the potential breakout to $50,000.

Recommended for you: Crypto Price Prediction For January 8: ETH, MKR, AXL

A buy signal presented by the. Moving Average Convergence Divergence (MACD) indicator validated the bullish thesis. Traders will be obliged to enter new long positions backed by the blue MACD line holding above the red signal line.

Failure to make consecutive four-hour candle closes above $45,000 could introduce the risk of a trend correction. With that in mind, it would be prudent to watch out for potential support areas, including the 20 Exponential Moving Average (EMA) (blue) at $44,067, the 50 EMA (in red) at $43,780 and the 200 EMA (purple) at $42,464.

Although highly unlikely with the spot ETF approval on the horizon, further price correction could seek to bounce off $42,000 and $40,000 support areas if push comes to shove.

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