In a dramatic turn of events, Bitcoin, the most prominent cryptocurrency, recently witnessed a surge to nearly $48,000. This unexpected rise was triggered by a misleading tweet from the U.S. Securities and Exchange Commission (SEC), which falsely indicated the approval of Bitcoin exchange-traded funds (ETFs).
However, this surge was short-lived as the SEC promptly rectified the situation, confirming their social media account had been compromised and denying the approval of Bitcoin ETFs. This clarification led to Bitcoin’s price correcting to around $46,000.
Bitcoin Jumps, Then Dumps to $45K As Fake News About Spot Bitcoin Approval Liquidates $50M
Bitcoin [BTC] endured wild swings during Tuesday’s trading session as a U.S. Securities and Exchange Commission (SEC) social media post about approving spot bitcoin exchange-traded funds… pic.twitter.com/PF9AsKMmNY
— ThugsAmbition (@ThugsAmbition) January 10, 2024
The incident caused significant volatility in the cryptocurrency market, with the global value of all cryptocurrencies dropping by 0.83% to $1.71 trillion within 24 hours.
Amidst this tumultuous landscape, the crypto community is eagerly awaiting the ETF deadline, with some speculating a potential surge in Bitcoin’s value to $100,000.
This latest episode underscores the growing impact of institutional movements and regulatory decisions on the highly dynamic and speculative crypto market.
False SEC Tweet Triggers Bitcoin Market Turbulence
Recently, the cryptocurrency market was thrown into a whirlwind by a deceptive tweet from the U.S. Securities and Exchange Commission (SEC).
The tweet falsely indicated the approval of Bitcoin ETFs, causing Bitcoin’s price to momentarily soar to $47.9K before falling back to $45.4K.
Breaking : X confirms a security breach—SEC account hacked due to lack of two-factor authentication. #Crypto #Cryptocurency #SEC pic.twitter.com/qQXy9RPjgA
— Bitinning (@bitinning) January 10, 2024
The SEC later rectified the situation, admitting their Twitter account was compromised due to a lack of two-factor authentication. This incident led to speculation about possible market manipulation or internal errors.
Ultimately, the misinformation and subsequent correction demonstrate how sensitive the market is to regulatory news and rumors.
Growing Confidence in Bitcoin Amid Institutional Attention
Tom Lee of Fundstrat Global Advisors has an optimistic outlook for Bitcoin, predicting a potential rise to $150,000 within the next year and $500,000 within five years, especially if Bitcoin spot ETFs are greenlit.
Additionally, Glassnode data reveals a surge in institutional interest, particularly in Bitcoin futures on the CME Exchange, accounting for a significant 36% of the market.
This shift indicates a growing institutional confidence in Bitcoin derivatives, suggesting a maturation and stabilization of the market.
As institutions increasingly engage in the crypto market, their impact on trading patterns is becoming more evident, possibly paving the way for broader adoption of cryptocurrencies.
Tom Lee’s bullish predictions, coupled with the rising institutional interest documented by Glassnode, point towards a potentially brighter future for Bitcoin, bolstering investor confidence and possibly leading to greater demand and higher prices in both the short and long term.
Bitcoin Price Prediction
As of January 10, during the US trading session, Bitcoin is hovering around $45,990, displaying a consolidation pattern. The cryptocurrency’s pivot point for the day is set at $45,721. In terms of resistance, Bitcoin is encountering its first challenge at $46,306, with further obstacles at $47,228 and $47,922 that could limit its upward momentum.
On the downside, support levels are established at $45,230, with additional safety nets at $44,739 and $44,398. These levels are crucial in halting any further price dips.
The Relative Strength Index (RSI) for Bitcoin currently stands at 57, suggesting a moderately bullish sentiment but not venturing into overbought territory, which typically signals a potential price pullback.
Bitcoin Price Chart
Bitcoin’s price is trading above its 50-Day Exponential Moving Average (EMA) of $44,708.0, indicating a prevailing short-term bullish trend.
The technical chart analysis points out that Bitcoin has recently undergone a Fibonacci retracement at $45,721, coinciding with the 38.2% Fibonacci level.
This retracement is a vital indicator; a continuous move below this mark could intensify selling pressures, especially as Bitcoin corrects from previously overbought conditions.
Overall, Bitcoin’s current trend leans towards cautious optimism, especially if it stays above the $45,250 mark. Short-term forecasts suggest that Bitcoin might attempt to breach its immediate resistance levels in the near future.
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