FX.co ★ Technical Analysis of BTC/USD for December 20, 2021

Crypto Industry News:

The U.S. Securities and Exchange Commission continues to delay decisions on Bitcoin ETFs with two new extension notices.

The SEC put down two major Bitcoin ETFs on Wednesday, including the "real" NYSE Arca Bitcoin ETF, dubbed the Bitwise Bitcoin ETP Trust, and the Bitcoin ETF owned by the Grayscale Bitcoin Trust.

The SEC now expects it to decide whether to approve or reject or "pursue a determination or rejection procedure" of the Bitwise ETF and the Grayscale ETFs on February 1 and February 6, respectively.

The Commission considers that it is appropriate to allow a longer period to act on the proposed rule change in order to have sufficient time to consider the proposed rule change and any comments received.

Bitwise Asset Management applied for a physically secured Bitcoin ETF on October 14, planning to be exposed to "Real BTC" and not to derivatives such as Bitcoin futures or other indirect exposure. The company then ditched its own ETF app based on Bitcoin futures in November.

Grayscale is the world's largest Bitcoin fund with total assets under management of $ 45.6 billion. The company filed an application to convert its flagship Bitcoin product to an ETF on October 19.

Technical Market Outlook

The BTC/USD pair can't get any steady upward momentum and is approaching the last week low again. The nearest technical support is seen at the level of $45,376 and $44,310. The key short-term technical resistance is located at the level of $51,913 (Pin Bar high) and $53,333. The momentum is currently hovering just below the level of fifty on the RSI (14) indicator. Despite the recent complex and time consuming corrective decline in form of ABCxABCxABC pattern, the larger time frame trend remains up and only a clear and sustained breakout below the wave C low at $41,678 would change the outlook to bearish again.

Weekly Pivot Points:

WR3 - $54,041

WR2 - $52,052

WR1 - $49,081

Weekly Pivot - $47,204

WS1 - $44,065

WS2 - $42,187

WS3 - $39,115

Trading Outlook:

The ABCxABCxABC complex corrective cycle might be terminated at the level of $41,678 and the market is ready to continue the up trend. According to the long-term charts the bulls are still in control of the Bitcoin market and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $39,474 is clearly broken on the daily time frame chart (daily candle close below $39,000 would be considered as a long-term trend change due to the lower low placement).