Bitcoin To Springboard To $42k As BTC Spot ETF Approval Beckons

John Isige
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Bitcoin price daily weekly chart

The hype around the potential approval of the first Bitcoin spot exchange-traded funds (ETFs) in the US is back and is propelling the price of the largest digital asset towards a larger breakout. Before this 2.5% upswing in the last 24 hours to $37,378, Bitcoin price corrected to $35,650.

Selling pressure overwhelmed the bulls amid the saga at Binance, the largest crypto exchange by volume. The former CEO and the founder of the company Changpeng Zhao (CZ) resigned to honour a settlement agreement with the Department of Justice (DoJ), which stipulated that he plead guilty to violating US anti-money guidelines.

CZ as he is commonly referred to also agreed not to hold any executive positions at Binance, with the exchange required to pay $4.3 billion in settlement fees. The former CEO would be allowed to retain his stake in the company.

Recommended for you: Binance Whale Accumulates 2800 BNB Amid Money Laundering Probe

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Bitcoin Price Jumps As The Binance Dust Settles

Bitcoin is on the verge of breaking the $38,000 resistance to extend the bullish leg above $40,000 for the first since April 2022. Optimism around the possible approval of a Bitcoin spot ETF is mainly behind the bullish thesis.

Some market participants believe that, with the uncertainty around the charges Binance has been facing against the Department of Justice (DoJ) and other US agencies, BTC could make significant headway towards the end of the year.

According to crypto analyst and investor @CryptoMichNL, the crypto market is “in a bull cycle.” His post on Twitter (now X) echoed the impact of a spot Bitcoin ETF bolstered by the confidence regarding the approval anticipated over the coming weeks.

As momentum increases behind Bitcoin price, its path above $40,000 would be cleared. Traders are waiting for the next break above the immediate resistance at $38,000 before activating their long positions to capitalize on potential gains to $42,000 and $45,000, respectively.

The path with the least resistance, according to the Moving Average Convergence Divergence (MACD) indicator is to the upside. The buy signal confirmed around mid-October with the blue MACD line flipping above the red signal line, encourages traders to keep their active positions open if not launch more long orders.

Bitcoin price daily weekly chart
Bitcoin price daily weekly chart | Tradingview

A correction from the seller congestion at $38,000 cannot be ruled out yet, especially with the presence of a rising wedge pattern. Failure to extend the bullish leg above $40,000 might introduce a cloud of bearish pressure, amid rising disappointments among traders and investors.

If selling pressure surges due to the need for traders to protect their capital, Bitcoin might sweep the recent support at $35,650. In case the rebound delays, further losses may follow to $33,000 before the uptrend begins.

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Grayscale Updates Bitcoin Spot ETF Proposal

The largest digital asset management company, Grayscale has updated its application to covert the existing Bitcoin Trust fund, GBTC to a spot BTC ETF with the Securities and Exchange Commission (SEC).

According to Bloomberg analyst, James Seyffart, Grayscale submitted a new proposal for the intended conversion of the GBTC by changing the stock code to BTC.

Chinese crypto journalist Wu Blockchain said that the update hints at Grayscale hammering out with the SEC to ensure that the required changes are implemented ahead of the likely approval.

The approval of a Bitcoin spot ETF would be a game changer for the crypto industry. In addition to allowing institutional investors to buy BTC shares on a standard stock exchange, the ETF validates Bitcoin as a mature asset free of manipulation.

Investors are early waiting for the greenlighting with Bitcoin expected to rally massively ahead of the halving in April which again is expected to be extremely bullish for BTC and the rest of the market.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.