Dave Floyd, founder of Aspen Trading Group and host of the Daytrader Podcast, discusses the anticipation and speculation around the approval of Bitcoin by ARK, the impact of options market and pension funding on the overall market, the importance of technical analysis in investing, and the possibility of a run-up correction in Bitcoin similar to 2019.
The potential approval of the Bitcoin spot ETF could democratize access to Bitcoin for a wider range of investors.
Traders should watch for potential pullbacks as entry points, with key support levels around $45,240 and $44,400.
Deep dives
Spot Bitcoin ETF Regulatory Decision
The regulatory decision on the spot Bitcoin ETF is expected to be announced on January 10th. This is the first Bitcoin spot ETF being ruled on by the SEC, and it could potentially open the door for similar products in the market.
Impact of Spot Bitcoin ETF Approval
Approval of the spot Bitcoin ETF would provide a simple and efficient way for investors to gain exposure to Bitcoin without having to navigate the complexities of cryptocurrency exchanges or custody arrangements. It could democratize access to Bitcoin and attract a wider range of investors.
Speculation and Market Reaction
There is speculation and anticipation that the SEC might approve the spot Bitcoin ETF, leading to a rally in Bitcoin and other cryptocurrencies. However, it is important to note that this does not guarantee approval, and the market sentiment and reactions can be highly volatile.
Technical Analysis and Trading Approach
From a technical standpoint, Bitcoin has shown a strong rally, breaking critical levels and entering open space for further upside potential. Traders are advised to watch for potential pullbacks as entry points, with key support levels around $45,240 and $44,400. The overall sentiment and price action will ultimately dictate the trading approach.
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Dave Floyd, founder of Aspen Trading Group and host of the Daytrader Podcast, joins Maggie Lake to explore what’s moving markets ahead of this week’s crucial inflation data and the potential Bitcoin spot ETF approval.
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