© Reuters
Investing.com – After initially accentuating the previous day’s gains, the stock lost ground on Tuesday as a hack into the SEC’s X account, the US regulator, caused market turmoil.
Recall that Bitcoin and the crypto market in general took off on Monday, as updates to details in Bitcoin ETF proposals from BlackRock (NYSE:) and others confirmed that approval is imminent.
Tuesday was then more turbulent. Indeed, Bitcoin progressed further, reaching a peak at $47,845, before correcting to a low near $45,000 (a plunge of 6%), to settle at $46,000 at the time of writing. this article during the night of Tuesday to Wednesday.
However, this peak in volatility can be explained by “fake news” which has its source in tweets from the SEC, the US financial regulator, whose account was compromised.
“Today, the SEC grants approval for #Bitcoin ETFs to be listed on all registered national securities exchanges. Approved Bitcoin ETFs will be subject to ongoing monitoring and compliance measures to ensure continued protection investors,” tweeted the @SECgov account.
The post included a graphic with a quote purporting to come from Mr. Gensler. The account also posted a second tweet that simply said “$BTC,” but that message was almost immediately deleted.
The Securities and Exchange Commission (SEC) then quickly confirmed that it had not approved bitcoin ETF applications, and informed that its X account had been hacked.
“The SEC @SECGov has not approved the listing and trading of spot bitcoin exchange-traded products.”
Note, however, that we are still expecting validation of Bitcoin ETFs by the SEC today, and that a refusal by the SEC would constitute a real twist that would cause BTC to plunge.
On the other hand, it should be noted that the initial bullish reaction of crypto to Tuesday’s fake news from the SEC was overall limited, which indicates, as many analysts have already suggested, that this bullish factor is already almost fully integrated, and we should therefore not expect a bullish explosion when the SEC finally validates the BTC spot ETFs, with some going so far as to predict that investors will “sell the news” and that the crypto will fix.
Technical thresholds to monitor on Bitcoin
From a graphical point of view, the trend remains bullish despite the correction of the last few hours, and the $45,000 zone constitutes immediate support.
Below $45,000, the bullish profile of Bitcoin would begin to take a turn for the worse, but we will only be able to speak of a fundamental bearish reversal in the event of a break below $40,000.
On the upside, yesterday’s high near $48,000 is the first benchmark, after which investors could aim for $50,000, a threshold that has a good chance of offering resistance.