Crypto outlook | SEC Approves Bitcoin ETF Options Amidst Legal Battles and Price Breakouts

Fundamental Data

The SEC approved options on spot Bitcoin ETFs (GBTC, BTCUSD, BITB), driving significant capital inflows. The move might be one reason, causing the markets to gear up steam. BlackRock acquired USD 680M in Bitcoin, indicating a strategic shift in crypto investments. Coinbase’s intermediary intensified the legal battle with the SEC regarding Ethereum’s security classification and Canary Capital files for a spot Litecoin ETF, seeking regulatory approval, the positive sentiment in Litecoin can be seen as we examine below. And Ripple continues to faces ongoing legal challenges with the SEC’s Civil Appeal in the XRP lawsuit.

Technical Analysis:

BTC – A potential resistance breakout on the BTCUSD 4HR chart is spotted at USD 70,059. If the breakout sustains, there’s a strong probability of a rally towards USD 72,096. The recent breakout from the sideways pattern might support the bullish view.

However, if the breakout fails, the price could retrace to USD 67,087.

ETH – A potential upside breakout of the downtrend line is identified on the ETHUSD daily chart at USD 2,637. If the breakout sustains, there’s a strong probability of a rally toward USD 3,540. The 50- moving average might also act as a support zone, should the market start to retrace to lower levels.

However, if the positive sentiment fades, downside risks point to USD 2,200, the next important support level.

XRP – XRPUSD is showing potential for an uptrend line rejection at 0.5425 on the 1-hour chart. Since the market seems not capable of breaking the 50- moving average, there might be room for a further slide initially. The long-term bearish momentum might also act negatively here. If this rejection holds, there’s a strong likelihood of a bearish move towards 0.5360.

However, if the market will be able to rise, upward potential could be seen towards the 0.5460 area.

LTC – A major breakout of the long-term downtrend to the upside has been identified on the weekly chart of LTCUSD at USD 67.50. It looks like the positive pattern can cause the market to rise further towards the USD 84.00 zone. The Litecoin ETF news in itself might be a reason why the market might find more attention of fresh buyers. Also the break of the 50- moving average could act as support, unless the zone will be broken to the downside again.

Only if price can break below the psychological USD 70.00 zone downside momentum might increase. However, the general positive sentiment in markets might offer further support as well for Litecoin.

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