Bitcoin Price Defends $3.5K After Cboe Pulls ETF Proposal

[mich]

Bitcoin Price Defends $3.5K After Cboe Pulls ETF Proposal
https://www.coindesk.com/bitcoin-price-defends-3-5k-after-cboe-pulls-etf-proposal

With bitcoin (BTC) showing resilience to negative news flow, a strong bullish move is looking increasingly likely.

On Wednesday, the Chicago Board Options Exchange’s (CBOE) BZX equity exchange withdrew its request for a rule change by the U.S. Securities and Exchange Commission (SEC) that would have allowed it to list a bitcoin exchange-traded fund (ETF) backed by VanEck and SolidX.

The market narrative with respect to the ETF is that its approval could trigger the next bull run in the leading cryptocurrency by market value. Moreover, in the past, markets have responded negatively to delays or rejections in ETF approval.

The latest ETF withdrawal, however, has barely moved the needle for BTC’s price. The cryptocurrency continues to trade in a sideways manner above the crucial support at $3,500.

The calm response to the bearish news could be considered a sign of seller exhaustion – more so, as the primary trend is still bearish. As a result, the cryptocurrency could soon end the 14-day-long consolidation with a bullish breakout.

Further, the Cboe ETF – first filed with the SEC in June 2018 – had experienced several delays in the past. As a result, the bar of expectation was set low and was likely priced in by traders.

As of writing, BTC is changing hands at $3,540 on Bitstamp, representing a 0.70 percent drop on a 24-hour basis.

On the daily chart, BTC has created a descending triangle, which comprises a horizontal line connecting a strong support level and a falling trendline representing lower highs.

A UTC close above the upper edge of the triangle, currently at $3,630, would confirm the breakout and could yield a rally to the psychological resistance of $4,000.

The odds of the bull breakout look good, as the ETF news failed to embolden the bears and gold is feeling the pull of gravity (as discussed yesterday, BTC and gold look to be inversely related).


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    BTC’s defense of $3,500 amid the bearish news flow likely indicates seller exhaustion. As a result, the prospects of cryptocurrency witnessing a triangle breakout on the daily chart are high. A bull breakout, if confirmed, would expose resistance lined up at $4,000.

    A triangle breakdown – i.e. a close below $3,470 – would validate the bearish setup on the weekly chart and increase the odds of a drop to the December low of $3,122.

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[avikz]

Can you please remind me if the CBOE one was the physical one? because if the ETF proposed was the physical one, then it is definitely a sad news. Otherwise it is the reason to cheer. Because in physical ETF, actual bitcoin will be traded but in a synthetic ETF, only bitcoin futures will be traded which will bring no impact to the market other than increasing the numbers of speculators. So please tell me if the CBOE one was the physical one.

[FatBen]

I don't know if it just only me but I really didn't care much about the ETF proposal... If BTC rode from cents to 20K without the ETF proposal in view then we are still good.

[Ranly123]

I don't know if it just only me but I really didn't care much about the ETF proposal... If BTC rode from cents to 20K without the ETF proposal in view then we are still good.

That's right, Bitcoin started from 0 without ETF but stil rise up to $20k. These only means that even without the ETF proposals Bitcoin would still be on the go for another bullrun.

[sunsilk]

That's right, Bitcoin started from 0 without ETF but stil rise up to $20k. These only means that even without the ETF proposals Bitcoin would still be on the go for another bullrun.

This is what I'm about to say. Bitcoin made to its all time high without the help of any ETF proposal/approval. It's likely that few years from now bitcoin will go on bull run as usual through strong mass adoption.

I don't know if it just only me but I really didn't care much about the ETF proposal... If BTC rode from cents to 20K without the ETF proposal in view then we are still good.

I don't care also with ETF but majority is very positive to it because they just think that it's the only way to see another bull run. It's the only help that bitcoin can get to make its price up again.

[biskitop]

it seems like the bull run will really be delayed, for the time being ETF is still not received and still waiting until February again.

[joniboini]

it seems like the bull run will really be delayed, for the time being ETF is still not received and still waiting until February again.

I don't think so. In fact, ETF withdrawal doesn't affect market movement at all (at least up to this point). Looks like people were never expecting ETF to happen and so this news doesn't bring any new sentiment to the market. Most likely we will go sideways for the next few months before we can see new price action.

You can also check this analysis which argues that we're at the bottom[1], so there should not be any sudden price movement even though fundamental looks bleak or great.
[1] https://medium.com/@renato_shira/bitcoin-bottom-is-in-35ff1e2b9403

[exstasie]

The latest ETF withdrawal, however, has barely moved the needle for BTC’s price. The cryptocurrency continues to trade in a sideways manner above the crucial support at $3,500.

The calm response to the bearish news could be considered a sign of seller exhaustion – more so, as the primary trend is still bearish. As a result, the cryptocurrency could soon end the 14-day-long consolidation with a bullish breakout.

I'm leaning in this direction myself. When the market is bearish and supply is strong, sellers tend to react strongly to bad news. Seeing no reaction at all to this news indicates seller exhaustion.

That doesn't mean the bear market is over, but it does mean a correction back up to $5K is still possible (and maybe even likely).

[Commitments]

Almost at new year bitcoin price still keep on $3,5k and never could raised to higher price, will be the dark year for bitcoin or not, we will wait what happen at bitcoin in this year, will be lower or higher.

[bangkit tri]

The latest ETF withdrawal, however, has barely moved the needle for BTC’s price. The cryptocurrency continues to trade in a sideways manner above the crucial support at $3,500.

The calm response to the bearish news could be considered a sign of seller exhaustion – more so, as the primary trend is still bearish. As a result, the cryptocurrency could soon end the 14-day-long consolidation with a bullish breakout.

I'm leaning in this direction myself. When the market is bearish and supply is strong, sellers tend to react strongly to bad news. Seeing no reaction at all to this news indicates seller exhaustion.

That doesn't mean the bear market is over, but it does mean a correction back up to $5K is still possible (and maybe even likely).

technically, bitcoin broke the price of $ 5000, and currently still in a bearish position, it is possible for a correction to occur, if it cannot break the price of $ 5000, then I think the price will come back down again

[Jating]

I think everyone should differentiate withdrawal from rejection. When we say withdrawal, it means the CBoE will just re-apply if everything settles down in the side of US government. A eventual rejection will dose all hopes and that might have a negative effect on the price.

Right now the withdrawal doesn't mean anything for investors though, that's why their no significant dent on the price, imho.

[amrulshare]

I just thought that in 2019 the media news and the Proposal ETF did not have a negative impact on the value of Bitcoin. This shows that Bitcoin has a brighter future and is likely to start in 2019 that many positive things will happen!

[Lucius]

Can you please remind me if the CBOE one was the physical one? because if the ETF proposed was the physical one, then it is definitely a sad news. Otherwise it is the reason to cheer. Because in physical ETF, actual bitcoin will be traded but in a synthetic ETF, only bitcoin futures will be traded which will bring no impact to the market other than increasing the numbers of speculators. So please tell me if the CBOE one was the physical one.

It was physical ETF, there was a lot of writing about that on the forum and even you comment regarding that : https://bitcointalk.org/index.php?topic=4693319.0

There is no need to celebrate or be too worried about this news, simply is not the time for BTC ETF, regardless of type. To get some things in order as SEC ask, we will need to wait few more years, but that does not mean that there will not be new attempts this year for BTC ETF.

[Kemarit]

I think everyone should differentiate withdrawal from rejection. When we say withdrawal, it means the CBoE will just re-apply if everything settles down in the side of US government. A eventual rejection will dose all hopes and that might have a negative effect on the price.

Or possibly that people are no longer interested on the news per se. I'm sure that majority will agree that its very tiring waiting for positive news about the whole ETF drama for the last couple of years.

Right now the withdrawal doesn't mean anything for investors though, that's why their no significant dent on the price, imho.

Definitely they can reapply again in the future, but I would assume that it will be the rest results just like the rest of previous Bitcoin EFT proposal, - a rejection.

[Huskarls]

it seems like the bull run will really be delayed, for the time being ETF is still not received and still waiting until February again.

I don't think so. In fact, ETF withdrawal doesn't affect market movement at all (at least up to this point). Looks like people were never expecting ETF to happen and so this news doesn't bring any new sentiment to the market. Most likely we will go sideways for the next few months before we can see new price action.

You can also check this analysis which argues that we're at the bottom[1], so there should not be any sudden price movement even though fundamental looks bleak or great.
[1] https://medium.com/@renato_shira/bitcoin-bottom-is-in-35ff1e2b9403

since Q4 2018, the ETF has been awaited to wait until it continues to experience a continuous delay until now. Where it also has an impact on the market until we have reached the bottom point like your statement. There is even a high probability that the market will decline if there is no clarity about ETF.

[davis196]

This is a good move.Withdrawing a proposal that was about to be rejected anyway.There is a lot of frustation and disappointment in the crypto world,since last year's bull run,so it would be a lot easier for the SEC to reject the proposal.In a bull run,market hype,optimistic situation regarding btc,the SEC will face higher pressure to approve the ETF.We are waiting for that moment to come.

[deisik]

That doesn't mean the bear market is over, but it does mean a correction back up to $5K is still possible (and maybe even likely)

A lot of people are waiting for that rebound to come about

This is our new ceiling, get used to it. When Bitcoin fell below 12k in earnest (after a few short-lived rebounds), many folks here were saying that it would be a new ceiling. And it came to be. Now our new ceiling seems to be at 5k. Whenever price is going to come close to this mark, there will be a massive resistance as people will be selling what they bought just below 6k (which was a support a couple months ago) in an effort to get rid of their bags even at a small loss (or not so small)

The bottom line is that there are still a lot of sellers in the market despite the price looking "stable". But if they are not going to sell at current prices, it doesn't mean that they won't when the price rises to their break-even point. These are the weak hands that everyone talks about and thinks that they have already been shaken out. They haven't

[crzy]

it seems like the bull run will really be delayed, for the time being ETF is still not received and still waiting until February again.

Do we really need this one? I think we can still pump without this and if you can see the market don’t react negatively on this. I mean, ETF is good but if its going to be delayed it doesn’t mean the market can’t go up anymore we just need to wait for the right time and be positive always.

[hatshepsut93]

Remember how in the last year the price was dropping when ETF's got rejected? Now one of the most promising ETF's got called off, and no one cares, the price didn't even flinch. The market is getting more and more rational, people don't FOMO or panic because of the news, this is good. The less volatile and sensitive Bitcoin is, the more valuable it becomes. Price volatility has been and still is a major flaw of Bitcoin.

[wuvdoll]

This was something I did not really expected. I mean I knew bitcoin ETF proposal may not get accepted and market would react to it but maybe withdrawing from contention was different. I believed only two options existed, either ETF would get accepted or it would get rejected, I did not think about this option at all.

To my assumptions if the ETF got accepted the price of bitcoin would have gone up and if the ETF got rejected it would have gone down, now that they are not even a thing the price didn't move, its closer to getting rejected than getting accepted so it should have gone down but apparently people didn't even care about it that much which I am not sure if its good or not. Now we know what happens when ETF doesn't happen, it happened before when it got rejected the price didn't move but does that also mean price will not go up when one day it gets accepted? If that's the case that is not good for any of us.