Bitcoin
and other cryptocurrencies slipped Friday as the wait for a regulatory decision on hotly anticipated crypto funds stretched on, though traders remained bullish that the latest rally in digital assets will continue.
The price of Bitcoin has fallen 3% over the past 24 hours to $36,250, retreating from its recent high near $38,000, which marks the largest digital asset’s highest level since cryptos plunged into a brutal bear market in May 2022. Bitcoin has rallied by more than 30% in a matter of weeks, snapping out of a multi-month period of subdued crypto trading, but has met persistent resistance at the $38,000 level.
“Bitcoin had a slight pullback this week after reaching the $38,000 level,” said Rachel Lin, CEO of trading platform SynFutures. “Currently, the $38,000 level is acting as resistance, with Bitcoin rejecting from the zone twice in two weeks. On the downside, $35,000 will likely act as the next support zone, followed by $31,500.”
Bitcoin’s big rally—which has seen the token trounce the
Dow Jones Industrial Average
and
S&P 500
—largely has come amid hope that regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF). Such a fund, which would hold the crypto itself, is widely expected to usher in a fresh wave of investor interest in digital assets, which would support prices.
The problem? The Securities and Exchange Commission (SEC) continues to delay its decisions on spot Bitcoin ETFs, pushing back the deadline on its verdict for Hashdex’s application—initially due on Friday—to Jan. 1, 2024. A decision on
Franklin Templeton’s
spot Bitcoin ETF application also was due Friday.
Despite delays to the most hotly anticipated crypto catalyst all year, traders remain firmly bullish on Bitcoin’s momentum and see more gains ahead.
“The money flow into the crypto ecosystem continues to remain strong, marking the seventh week of positive inflow,” said Lin. “The options market remains unchanged, with $30,000 to $50,000 call options having the most open interests for November and December. Open interest call to put ratio now stands at two to one, showing a strong bullish bias,” she added. Call options represent contracts giving traders the right to buy an asset at a specific price—so calls of up to $50,000 imply investors see Bitcoin approaching that level this month or next—while put options are bearish bets.
Beyond Bitcoin,
Ether
—the second-largest crypto—fell 4% to below $1,970. Smaller tokens or altcoins were also lower, with
Cardano
down 7% and
Polygon
plunging 9%. Memecoins were more mixed, with
Dogecoin
up 3% and
Shiba Inu
shedding 2%.
Write to Jack Denton at [email protected]
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