• Bitcoin Price slide, potential support at $3,400 or 78.6 percent Fibonacci level
  • SEC may not approve Bitcoin ETF
  • Reaction at $3,700 important for bulls

In the short-term, sellers seem to be in charge and yesterday’s drop below our immediate support at $3,700 may lead to reductions towards $3,400. In the midst of this, we are net bullish because of buy pressures of week ending Dec 23.

Bitcoin Price Analysis

Events of the week ending Dec 23 and consequent follow through reinvigorated bulls. Regardless, the fact that prices reversed from the $4,100-200 resistance zone at the back of high volumes meant sellers are back in contention and the third phase of a classic bear breakout pattern—the trend resumption phase is in progress. Going forward, the reaction of BTC prices at the 78.6 percent Fibonacci retracement level at $3,400-50 zone could define medium-term price trajectory.

Fundamentals

Surprisingly, the question of Bitcoin ETF approval appears to be shifting from regulatory compliance to market readiness. Cynics are not confident about the maturity of the sector and whether existing infrastructure, especially on the custodial side of the equation, shall handle the expected transaction deluge from institutional grade and HNW investors.

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