Bitcoin Rallies After 10% Price Plunge

ETF Report Causes Flash-CrashBitcoin prices are rallying firmly today with the market having now recovered more than 50% of yesterday’s 10% price plunge. The sharp downturn came in response to a report circulating online claiming that the SEC would likely turn down current spot-Bitcoin ETF applications. Produced by Matrixport, a crypto financial services platform, the report claimed that current applications fell short of meeting crucial criteria needed to secure approval. Additionally. The report also claimed that the SEC chairman, Gensler was a key opponent of crypto, pushing for further compliance in the crypto industry. As per comments as recently as December, Matrixport believe he will remain a key hurdle for current applications.Swift RecoveryDespite the sell-off yesterday, however, BTC prices have since bounced back sharply suggesting the market has shaken off the initial shock reaction the report. Initially traders believed the report to have been an official rejection of current application. However, as the report was circulated more widely, sentiment recovered. Bulls claim that the report is purely speculative and lacks any substantive detail to suggest real risk of the applications being rejected and, as such, traders have reverted back to the view that BTC ETFs will be coming this year. While this narrative holds, BTC looks likely to continue higher near-term while traders await further comments from the SEC.Technical ViewsBTCThe rally in BTC has stalled for now into the 45520 level. With bearish divergence in momentum studies readings, there is risk of a double top forming. 40345 will be the key downside level to watch with a break of that zone opening the way for a much deeper move lower. To the topside, if bulls can breach 45520, 48350 will be the key upside level to watch.