Bull or Bear: $4K a Critical Point for Bitcoin

Bitcoin is currently above $4,000. Many are optimistic about this development. In fact, there are those who believe that it is going to go up some more in the coming months. In fact, even someone like Tom Lee is quite optimistic that bulls are back this 2019.

Is it going to go up? Or is Bitcoin going to go back down? These are some of the questions that many are asking. In fact, crypto experts believe that you won’t be seeing Bitcoin at around $3,000 in a while.

If you are going to ask crypto trader and analyst DonAlt, the crypto expert mentioned that “Watching paint dry is more exciting than watching this. I think we’ll be getting a pretty big move soon”. He also set his target at around $4,500 while he also set his lower target at $3,500.

DonAlt made another tweet saying that he actually sees an increased test on resistance and the support levels. The more that these levels get tested, it would signify weakness on those levels. It means that if we are going to see Bitcoin go straight up above $4,000, it shouldn’t be sitting too long at this price.

The analyst mentioned that “Most people become more and more confident the more often support/resistance holds. For me it’s the opposite. More tests equal increasing weakness. Buyers/Sellers can only buy/sell so much until they run out”.

Life or Death?

Naeem Aslam who is the chief markets analyst for Think Markets UK thinks that the $4K level is considered a “life or death” price region for crypto traders. He cited different instances since 2018 about the importance of the $4K level. He said that “Since December 14, 2018, there have been several battles between bulls and bears at the price level of $4K. In each, bulls have lost the war because after the first attack at the $4K level the bears have been able to gain enough strength to push the price back below this critical mark”.

ETF Isn’t Looking Good

Now, over the past months, a Bitcoin ETF has been seen by many as the one that could potentially legitimize Bitcoin for good. Unfortunately, there have already been a good number of Bitcoin ETF applications that have been denied by the agency.

Now, it seems that things aren’t looking good for the VanEck/SolidX Bitcoin ETF. According to a report, CBOE’s BZX Equity Exchange withdrawn its application for a rule change that regards to ETF. It cited the recent US government shutdown and how it can affect the overall SEC operations. However, the good news is that CBOE resubmitted the application by the end of January.

The SEC already announced on Feb 19 that there will be a formal countdown period as to whether or not to approve the Bitcoin ETF. Now, are we going to see a Bitcoin ETF soon? In reality, it does remain to be seen in the coming months.

There were also comments posted on the SEC webpage that questions the value of cryptocurrencies. There was even a six-page comment by Sam Ahn of Hana Trading. Basically, it deconstructed the Bitcoin ETF and Bitcoin itself. It even said that “BTC doesn’t have intrinsic value”.