The SEC’s rejection of a Bitcoin-based ETF led to a price spike that saw the market cap jump from $250 billion to more than $340 billion. The sudden change in momentum is expected for this reason, but traders should be prepared for volatility as they dip their toes into crypto.
One of the most popular tactics in cryptocurrency trading is to “buy the dip.” That means that when a coin drops from a high point, investors seek out opportunities for profit. But what do traders actually mean by “dip?” And how does it work?The “ethereum price” has been on a bit of a roller coaster ride, but the recent rejection from the SEC for a Bitcoin ETF is what sent the cryptocurrency to new highs.
On Nov. 12, bears swooped in to take control after news that the US Securities and Exchange Commission (SEC) had rejected VanEck’s spot Bitcoin (BTC) Exchange Traded Fund (ETF) application sent shockwaves through the cryptosphere, deflating the bullish momentum that had been building throughout the week.
While many investors hoped that the approval of a spot BTC ETF would propel Bitcoin to the coveted $100,000 price level, others, such as Bloomberg senior ETF analyst Eric Balchunas, predicted that the SEC would reject the VanEck fund, putting the odds of the SEC approving the VanEck fund at less than 1%.
According to data from Cointelegraph Markets Pro and TradingView, after maintaining support around $65,000 on November 11, the bull’s defensive line started to crack early on November 12, resulting in a 4% drop to a low of $62,280.
4-hour chart of BTC/USDT. TradingView is the source of this information.
Despite BTC’s unfavorable response to the ETF rejection, more experienced traders, like as market analyst and Cointelegraph contributor Michal van de Poppe, gave statements of calm.
The rejection of a spot ETF on #Bitcoin might be sparking a possible sell-off in the markets.
Rejection isn’t a negative thing; it happens all the time. Simply wait till we get it.
And correcting prices -> merely an opportunity to start purchasing assets at a lower cost.
November 12, 2021 — Michaal van de Poppe (@CryptoMichNL)
Van de Poppe views this as a wonderful chance for long-term bulls in Bitcoin and crypto in general to acquire up strong enterprises at a discount.
VanEck’s spot Bitcoin ETF is rejected by the SEC when the price of bitcoin falls below $63,000.
Bullish indicators include higher lows and higher highs.
Analyst and pseudonymous Twitter user ‘Venturefounder’ echoed a similar “buy the dip” stance, posting the chart below, pointing out that “Bitcoin still made the 2nd higher high and the 3rd higher low” (for now).
4-hour chart of BTC/USD. Twitter is the source of this information.
According to the founder of a startup,
“Seeing low $60,000 after ATH at $69,000 should be considered a blessing. It’s an attractive buy zone if BTC pulls back to $57,000-$61,000 (not confirmed). Right now, the 50DMA is $57,000.”
The total cryptocurrency market capitalization is currently $2.766 trillion, with Bitcoin commanding 43.2 percent of the market.
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
The “invest in bitcoin now” is a strategy that traders use to buy the dip. The strategy is used when an asset has been rejected by the spot exchange, and then rebounds.
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