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<p>The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/news/anticipation-builds-as-bitcoin-etf-nears-approval-but-what-if-it-doesnt-meet-expectations/">How Will Bitcoin Price React if Spot ETF Isn’t Approved? Here Are The Possible Speculations</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p>
<p>Bitcoin has experienced a surge in value amid growing anticipation that the first-ever US exchange-traded funds directly linked to the cryptocurrency will receive approval. However, amid the growing optimism, an important question looms: what happens if the Bitcoin ETF doesn’t meet the lofty expectations set for it?</p>
<h2 class="wp-block-heading" id="strong-bitcoin-s-price-surge-amid-etf-speculation-strong"><strong>Bitcoin’s Price Surge Amid ETF Speculation</strong></h2>
<p>This week, Bitcoin’s value has increased by 16%, reaching levels above $35,000, a milestone last seen in 2022. This remarkable ascent contrasts with a global stock market struggling due to elevated Treasury yields and deepening geopolitical tensions.</p>
<p>Supporters of digital assets argue that the introduction of spot ETFs by industry giants like <a href="https://coinpedia.org/news/blackrock-bitcoin-etf-hidden-on-dtcc-site-since-august-market-shattering-impact-this-week/" rel="noopener noreferrer nofollow">BlackRock</a> Inc. will accelerate broader Bitcoin adoption. But the timing of approval from a cautious SEC remains uncertain. Moreover, recent events like the FTX exchange’s bankruptcy have cast a shadow over the broader cryptocurrency market.</p>
<p>Eventually, many researchers &amp; analysts are looking into the other side of the spot. Bitcoin ETF approval&nbsp;</p>
<h2 class="wp-block-heading" id="strong-analysts-predict-uncertainty-surrounding-approval-of-bitcoin-spot-etf-strong"><strong>Analysts Predict Uncertainty Surrounding Approval of Bitcoin Spot ETF</strong></h2>
<p>Recently, Bloomberg Intelligence analyst Eric Balchunas anticipates that there may be a gap between the initial hype and the actual demand when a Bitcoin ETF commences trading on a stock exchange. He also notes that the performance of a Bitcoin ETF might not mirror the impressive launch of the first cryptocurrency futures ETF two years ago.</p>
<p><a href="https://cn.linkedin.com/in/thecicilu" rel="noopener noreferrer nofollow">Cici Lu McCalman,</a> Founder of Venn Link Partners, says, “If US spot Bitcoin ETFs are approved, we may see short-term selling. However, these products could be ‘bullish’ for Bitcoin in the long run.</p>
<p>Similarly, JPMorgan Chase &amp; Co. researchers expect the SEC to approve multiple spot Bitcoin ETFs by the January <a href="https://coinpedia.org/news/bitcoin-etf-decision-nears-january-10th-marks-crucial-date-for-ark-btc-spot-etf-approval/" rel="noopener noreferrer nofollow">10 deadline</a>. However, any potential rejection could lead to legal challenges against the SEC, adding another layer of complexity to the regulatory landscape.</p>
<h2 class="wp-block-heading" id="strong-bitcoin-s-overbought-rally-strong"><strong>Bitcoin’s Overbought Rally</strong></h2>
<p>Chart patterns suggest that Bitcoin’s rally may have become overstretched, while options bets indicate that some speculators foresee the potential for Bitcoin to reach $40,000 before encountering significant resistance. As of the latest data, Bitcoin is trading steadily at <a href="https://markets.coinpedia.org/bitcoin/?_gl=1*17j1gf2*_ga*NTQzNDc3MzQ4LjE2OTcxODMzODc.*_ga_RE1GG3FGQW*MTY5ODM4NTkzMC4xMy4xLjE2OTgzODYxMDIuMC4wLjA." rel="noopener noreferrer nofollow">$34,090</a>.</p>
<h2 class="wp-block-heading" id="strong-technical-indicator-challenge-strong"><strong>Technical Indicator Challenge</strong></h2>
<p>Fibonacci ratios, often used to identify market reversals, highlight a zone just below $36,000 as a potential obstacle to Bitcoin’s upward momentum. This zone corresponds to the 38.2% Fibonacci retracement of Bitcoin’s year-long decline through November 2022.</p>
<h2 class="wp-block-heading" id="h-overextended-rsi"><strong>Overextended RSI</strong></h2>
<p>Bitcoin’s weekly relative-strength index (RSI), a measure of momentum, has exceeded the 70 level for the first time since 2021. A reading above 70 is generally considered “overbought,” suggesting a reduced likelihood of experiencing the rapid rallies seen in the past.</p>
<p>Meanwhile, the future of the Bitcoin ETF remains uncertain, but its approval or rejection by the SEC will undoubtedly have significant implications for the world of digital assets.</p>

How Will Bitcoin Price React if Spot ETF Isn’t Approved? Here Are The Possible Speculations

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