The delay in the SEC’s decision-making process regarding Bitcoin ETFs has caused a drop in BTC’s weighted sentiment and raised concerns about a potential price correction. This news came after SEC Chairman Gary Gensler faced questioning at a US Congressional hearing. Many believe that the SEC is intentionally pushing the decision deadline, despite knowing the inevitable outcome.
The impact of this episode on BTC’s performance is evident from the slight decrease in its weighted sentiment over the past few days. However, Bitcoin’s social volume remains high, indicating its popularity in the crypto market. On the buying sentiment front, CryptoQuant’s data shows that BTC’s aSORP (average Spent Output Profit Ratio) is in the red, suggesting that more investors are selling their holdings and potentially indicating a market top.
Furthermore, the taker buy/sell ratio is also in the red, signifying that selling sentiment dominates the market. Despite these indicators, the decrease in exchange reserves is a positive sign that suggests some optimism in the market.
With BTC struggling to surpass the $27,000 mark and showing signs of increased selling pressure, many are wondering if a price drop is imminent. At the time of writing, BTC is trading at $26,952.5 with a market capitalization of over $525 billion, experiencing a 1.5% increase in the last seven days.
Analyzing BTC’s daily chart provides some insights into what to expect in the coming days. The Moving Average Convergence Divergence (MACD) indicates that bulls and bears are competing for control. Additionally, the Relative Strength Index (RSI) and Money Flow Index (MFI) are both trending sideways, suggesting that investors may experience several more slow-moving days in the coming weeks.
In conclusion, the delay in the SEC’s decision-making process regarding Bitcoin ETFs has had a negative impact on BTC’s sentiment and buying pressure. While the market remains uncertain, traders and investors should closely monitor BTC’s key indicators to make informed decisions about its future price movements.
