As we reported in today’s broad daily market summary, the U.S. Securities and Exchange Commission has approved six ETFs for Bitcoin (ETH), and they are set to begin trading as early as Tuesday.
It is no surprise that Bitcoin is facing some downward pressure as traders consider the possibility of Bitcoin holders moving some of their funds into ETH-linked assets.
The BTC/USD pair has declined from its monthly highs of $68,400 and is now hovering around the psychological level of $66,000.
Most importantly, Bitcoin’s current levels are in line with the pivot point on the 4-hour chart and trend line support, as well as the turning point from last week.
Are we looking at a downtrend opportunity here?
Bitcoin (BTC/USD) 4 hours Chart by TradingView
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The growing interest in ETH ETFs could help push Bitcoin higher as many novice traders use the native cryptocurrency as a “fiat gateway” before buying into other crypto assets. Additionally, the struggle of the US dollar against the Japanese yen could put downward pressure on the greenback and favor major currencies such as cryptocurrencies.
The BTC/USD pair may find support at its current levels, especially if traders act based on the 100 SMA crossing above the 200 SMA and signaling a trend continuation.
Bullish candles and sustained trading above the pivot point and trend line support could push the BTC/USD pair to the highs of $68,400 or even the $70,000 level.
But if the BTC/USD pair continues its weekly decline and trades steadily below the support levels we have identified, the pair may drop back to the previous turning points at $64,000 or $63,500.