Bitcoin ETF and how it will hit Bitcoin price
How will Bitcoin ETF decision impact Bitcoin price this summer? What price may we see if Bitcoin ETF will be declined or approved? How should we trade this situation?
And this video in just a few moments going to share with your thoughts and opinion of my good friend and fellow trader, Charlie Burton. And Charlie's got some very interesting insights and opinions about bitcoin. I'll share that with you in just a few moments. Before we do that, do I just want to quickly mention some important points about the bitcoin ETF? You might've heard the news recently that the sec decided to delay the decision on a bitcoin ETF. As you can see here from this interesting Forbes article, uh, which was posted just recently, what is next after the SCCS Bitcoin ETF decision? At the end of this article, there's something very interesting I'm going to share with you. Uh, let's go and talk about this now. So at the end he asks a very interesting question. He says, the major question is how any pending sec decision could impact the price of bitcoin in the future.
And it gives three scenarios and the three scenarios it gives are these. Firstly, he says, if the SEC continues to keep delaying the decision, it's likely the price will remain in some sort of range. So the first one is some sort of range. In other words, sideways move. Then he says, if the ICC delivers a negative verdict on the bitcoin ETF, it's likely to push the price lower and actually previous support levels will gain the most amount of attention. And you mentioned the support levels like 600050004000 to 3,130 now here's where it gets interesting. He says, if the FCC size that it's about time to let things go and turn on the green light and the doors approve the bitcoin ETF, it could create a major fomo among investors, which could lead the price ripping to the upside. Okay, so in other words, what he's saying is if the SCC approves the bitcoin ETF and gives it the green light, then very likely we could see the price of bitcoin going much higher because the fomo crowd are getting in on the action.
Now, if you just think about that for a second, you will understand, I'm probably realize there's something actually quite wrong here because he is not saying that professionals are going to push the price up. He's saying the fomo crowd, the Fomo, in other words, the fear of missing out crowd, the fomo investors are going to push the price up probably massively higher. The problem is, I'm sure you probably realized that is actually a bearish scenario, not a bullish scenario. Remember guys, that when the fomo credit or getting in, that usually means we're about a turning point. That's really quite a bearish a scenario for bitcoin. In fact, let me explain to you why. The reason why that is actually bearish is because one of the most important rules in analysis is professionals buy on the rumor they sell on the news. Let me repeat that.
It's quite important professionals. In other words, the institutions they buy on the rumor they sell on the news. Professionals very rarely buy on the news itself. If anything, what professionals do is they dumped their holdings. Aphid in news comes out. Okay, let me just show you an example of this. Here's a good chart demonstration of this. So usually when there's a rumor of something happening again, guys, remember professionals, insiders, institutions, they have access to information and data that we don't, we don't have access to. That's why they're called insiders. So usually they start piling up on that kind of rumor of something happening, pushing the price up, causing a rally that when the news comes out, when the announcement is made, that is actually when they start unloading and dumping their holdings onto who? Onto everybody else onto the fomo crowd. Okay. Onto the average folks.
So it's not like professionals getting in here when the news comes out, no professional that you sell their holdings onto everybody else and that's something important to bear in mind guys because if that is the case, then therefore when the news comes out, yes there might be a temporary spike in the price of Bitcoin, but actually very likely that spike or rally probably won't last for very long before finally the professionals on load everything causing a retracement. Notice after the news comes out, there is usually a retracement or a correction or drop in the price. Here's a good example for you. Here it is on bitcoin. Does that perfectly. Good example. Uh, but a few years ago as you can see your professionals again quietly buying it on the rumor. Okay, buying on the rumor, a notice for example, how these key moving averages crossing over the positive direction and then when the news eventually comes out, okay, so let's say the news comes out about let's say here that causes a spike in the price.
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It can see here a spike in the price. But notice the spike does not last very long. There are rally does not last for very long. This volatility is usually caused by the news events coming out that this is usually when professionals start dumping their holdings onto everybody else to fomo crowd the fair missing out crowd causing the price to reverse and boom priced then drops causing a retracement. And by the way, guys, let's not forget this, this time round, there'll be short sellers involved in this too. So maybe a few years ago we didn't have short sellers, but now we do have short sellers getting in on the action. And that actually causes the price to push down potentially even further. All right guys, it's the bottom line is professionals usually start waiting. Professionals waits for the retracement, wait for the drop to occur, and they just start piling up near to support levels.
So guys, what this teaches us is something very important, which is that whatever we might expect bitcoin to do, whatever the majority of people think is going to happen when the bitcoin ETF news is going to come out. Now whether the news is positive or negative, we don't know, but whatever we think is going to happen, whatever the obvious consequence going to be, usually the opposite happens. So anybody out there who thinks that a good decision or there was a positive decision by the sec on the bitcoin ETF is going to cause the price to rip to the upside. Maybe temporarily, but it probably won't last very long because remember guys, that is usually when professionals start unloading their, their positions onto everybody else, onto the fomo craft causing the price to drop. This is exactly what happens in almost any market happens on Bitcoin, happens on stock markets, happens also on the currency markets.
Let's go now and talk about Charlie Burton, my good friend and fellow trader. Let me share with you A. Charlie is saying, which is quite interesting. So let's go to one of his most recent videos. Here's a video to Charlie publishes quite recently and Charlie said in his video that bitcoin has some important support levels near the 6,000 levels. So he mentioned is important support levels near the 6,000 region and according to Charlie, what most likely it could happen on bitcoin is a pullback or retracement. Similar to what we discussed in our previous video back down to the 6,000 level. Uh, Charlie believes that because these levels have been tested so many times in the past, these levels in near the 6,000 range, that is quite likely the bitcoin could come back and test these levels. One more time. I actually think this is a high probability of scenario for Bitcoin as well.
In fact, I mentioned this in my own video last week. As you may remember, a individual I have published about. If bitcoin is bottom, then what is the most likely scenario for bitcoin in that video, I mentioned that a likely retracement back down to support levels. In fact, I would go further than Charlie. I would say that perhaps levels below the 6,000 level could be tested. For example, the 50% retracement or even the 61.8% retracement. These are near the 5,700 to 5,100 levels and even the key averages and the weekly time frame as well, and as I mentioned in my previous video, these are levels that could be tested before a potential bounce in the price of bitcoin occurs. Now, whether that balance is going to result in a new wave higher, we shall wait and see, but it all depends on whether bitcoin has bottomed or not.
If bitcoin has bottomed, as I mentioned my previous video, then it's likely that bounced that occurs near these levels could lead to the next wave potential wave three a longterm way through on on bitcoin. Of course, in another video we'll talk about the possibility of bitcoin having not bottomed as well. So guys, what we have to remember is that experience has taught us that whatever the SCC decision is going to be about a bitcoin ETF, whatever the news is going to be, whatever we think is going to be the direct result of that news, usually the opposite is likely to happen. Okay? Remember, if it was so obvious, if it was so obvious that something's going to happen, then you're not the only person who's thinking it. Professionals and insiders, I've thought about it too.