Crypto analyst DonAlt has warned his YouTube audience on TechnicalRoundup about a potential crash in Bitcoin‘s value if the U.S. Securities and Exchange Commission (SEC) rejects the spot Bitcoin Exchange-Traded Fund (ETF). He anticipates a 37% drop from current levels if the ETF is denied.
DonAlt considers the SEC’s decision on the spot Bitcoin ETF crucial. He predicts a fall below the $33,000-$38,000 consolidation range, potentially reaching around $24,000, if the SEC issues a rejection. He attributes the recent rise from $27,000-$28,000 largely to ETF speculation.
The analyst also cautioned that even if the SEC approves the spot Bitcoin ETF, it might still trigger a price drop. He suggests that much of the potential approval has already been priced in, and while there could be a short-term surge, it may lead to subsequent selling pressure.
DonAlt speculates a possible jump upon approval, followed by a drop as investors sell off. He forecasts a dip to $38,000 and then a rise above $40,000 if the ETF is approved, indicating a volatile response to the SEC’s decision either way.
Overall, DonAlt’s analysis highlights the significant impact the SEC’s decision on the spot Bitcoin ETF could have on the cryptocurrency’s price, with potential scenarios for both approval and rejection leading to market fluctuations.
