Bitcoin price extended its decline below $78,000. BTC is now attempting to recover from $74,500 but faces many hurdles near $80,000.

• Bitcoin is attempting to recover above $77,000 and $78,000.
• The price is trading below $80,000 and the 100 hourly simple moving average.
• There was a break above a bearish trend line with resistance at $78,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might dip again if it trades below the $77,000 and $76,000 levels.

Bitcoin Price Faces Resistance

Bitcoin price failed to remain stable above the $82,000 zone. BTC extended its decline below the $80,000 and $79,500 levels. The bears were able to push the price below $78,000.

It spared major bearish moves, pushing the price below $76,000. A low was formed at $74,543, and the price is now attempting to recover. There was a move above $78,000. The price surpassed the 23.6% Fib retracement level of the downward move from the $90,440 swing high to the $74,543 low.

Besides, there was a break above a bearish trend line with resistance at $78,400 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $80,000 and the 100 hourly simple moving average.

If the price remains stable above $77,000, it could attempt a fresh increase. Immediate resistance is near the $79,200 level. The first key resistance is near the $80,000 level. A close above the $80,000 resistance might send the price further higher. In the stated case, the price could rise and test the $82,500 resistance or the 50% Fib retracement level of the downward move from the $90,440 swing high to the $74,543 low. Any more gains might send the price toward the $84,000 level. The next barrier for the bulls could be $85,000 and $85,500.

Another Decline In BTC?

If Bitcoin fails to rise above the $79,200 resistance zone, it could start another decline. Immediate support is near the $78,000 level. The first major support is near the $77,000 level.

The next support is now near the $76,000 zone. Any more losses might send the price toward the $74,500 support in the near term. The main support sits at $72,000, below which BTC might struggle to recover in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $77,000, followed by $76,000.

Major Resistance Levels – $79,200 and $80,000.

The discussion surrounding approving a spot Ethereum exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) is intensifying as the decision announcement date rapidly approaches.

Bloomberg’s Senior ETF Analyst, Eric Balchunas, has shared a rather cautious outlook, estimating the likelihood of an ETH spot ETF receiving the green light at a mere 25%.

Ethereum Slight Chance To A Spot ETF Approval

Skepticism about the unlikelihood of a spot ETH ETF approval is rooted in what Balchunas perceives as deliberate non-engagement from the SEC rather than mere procrastination, leading to an absence of positive indicators for approval in the current environment.

Re Eth ETF approval, we are holding the line at 25% odds altho tbh it is a very pessimistic 25%. The lack of engagement seems to be purposeful vs procrastination. No positive signs/intel anywhere you look. Personally hope they do approve it but it just ain’t looking good. https://t.co/nuBdCDE18L

— Eric Balchunas (@EricBalchunas) March 25, 2024

The debate over the SEC’s stance on a potential Ethereum spot ETF is nuanced, with opinions divided within the industry. On the one hand, Balchunas has expressed disappointment over the lack of encouraging signs for Ethereum spot ETF approval despite holding out hope for a positive outcome.

On the other hand, Craig Salm, Grayscale’s Chief Legal Officer, offers a different perspective, suggesting that the SEC’s silence should not be interpreted negatively.

2/ In the final months leading up to #Bitcoin ETF approval, @Grayscale and others received positive and constructive engagement from the SEC. We had thoughtful conversations and discussed the finer details of creation/redemption procedures, cash v. in-kind, APs, LPs, custody etc.

— Craig Salm (@CraigSalm) March 25, 2024

Salm argues that many operational details relevant to an Ethereum spot ETF have already been addressed during the approval process for the spot Bitcoin ETF, implying that fewer aspects might require engagement this time around.

Ethereum’s Market Performance Amid Regulatory Uncertainty

Despite varying opinions on the implications of the SEC’s current engagement levels, the agency’s actions indicate a cautious approach toward Ethereum and its classification.

Recent moves by the SEC, including issuing “subpoenas” to crypto firms about their interactions with the Ethereum Foundation, have fueled speculation about a campaign to classify Ethereum as a security.

This development, coupled with the regulatory body’s historical hesitance towards cryptocurrency ETFs, casts doubt on the immediate future of a spot ETH ETF.

Amid this regulatory uncertainty, ETH’s market performance has been noteworthy. In the past week alone, the cryptocurrency has seen a 10% increase in value, with its price trading above $3,500 at the time of writing.

Featured image from Unsplash, Chart from TradingView