↵

Image Source: Pixabay

BTC Volatility Explodes

Bitcoin traders experienced heavy volatility across the European afternoon on Monday as the market reacted explosively to reports (later confirmed to be false) that the SEC had approved the BlackRock BTC ETF application. BTC prices were seen surging higher by more than 10% on the day before collapsing back as the reports were confirmed to be fake. The market action was fuelled by a breaking news tweet from prominent crypto news site CoinTelegraph which announced the apparent approval.

CoinTelegraph Apology

However, an hour later the tweet was removed and CoinTelegraph issued an apology for a tweet which “led to the dissemination of inaccurate information regarding the Blackrock Bitcoin ETF.” The group went on to say that it is conducting an internal investigation into the incident and will publish the results later today.

ETF Outlook Improving

Speculation regarding the likely approval of the BlackRock ETF has been a key driver of crypto flows recently. BTC had been rallying on the back of news last week that the SEC decided not to appeal against a court reversal of a decision in Grayscale’s favour which now improves the likelihood of its own ETF going through. This development was in turn seen as bolstering the chances of BlackRock’s application going through. For now, BTC looks likely to remain supported against a backdrop of better expectations, despite today’s volatility.

Technical Views

The rally in Bitcoin today saw the market retesting the underside of the broken bullish trend line. While we have since corrected lower, the market is holding above the 27415 level for now and, while above here, the focus is on a continuation higher with 32185 the next hurdle for bulls. To the downside, 24930 is the key support to watch. 

(Click on image to enlarge)

More By This Author:

Gold Prices Softened
DXY Breaking Out
Aussie Drops Following RBA Hold