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Bitcoin prices broke out to their highest levels yesterday since early 2022. The driver behind the move is ongoing optimism ahead of the upcoming SEC deadline tomorrow. The SEC is due to decide on a batch of spot-Bitcoin ETF applications which, if approved, will grant mainstream financial institutions access to the crypto markets for the first time. Expectations of a positive result have driven the Bitcoin rally over recent months with bulls anticipating a fresh wave of demand from Wall Street and the broader financial sector.

Optimism Ahead of SEC Deadline

This week, optimism has been bolstered by news of a slew of amended filings being made by current applicants. The filings, which all account for minor changes, suggest an ongoing dialogue with the SEC and have further strengthened the view that the SEC is likely to approve some, if not all, of the current applications.

Milestone for Crypto Markets

If approved, this will be a significant milestone for the crypto market. Spot Bitcoin ETFs will allow traditional financial institutions as well as retail investors the opportunity to gain exposure to crypto markets without needing to set up Bitcoin wallets or hold any underlying assets themselves. If approved this week, Bitcoin looks likely to continue sharply higher near-term as traders then look ahead to the April halving event which is equally expected to boost the market.

Technical Views

Bitcoin

The rally in BTC has seen the market breaking out above the 45520 level, trading up to its highest levels since April 2022. While above here and with momentum studies bullish, the focus is on a continuation higher and a breakout above the 48350 level next. To the downside, 43015 is the key support to watch. 

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