Bitcoin fell nearly 10% in just 75 minutes yesterday. The belief that the spot ETF will be approved this week was overwhelming in the markets. The traders’ heavy optimism was shaken after the delay of the decision. Long covering was explosive, a classic crypto market move, but the recovery after the fast retreat was weak. BTC had a massive rally at the end of 2023 and some room to correct. If the ETF approval process is delayed to next week, the weekend might become difficult for Bitcoin bulls. The SEC has a deadline until the 10th of January, after which a decision must be announced. However, the SEC might want to delay the deadline and say it will need more time. The good news, however, is that the SEC is now more active than before, meeting several key players ahead of the deadline.
(BTC Daily Chart)

A possible delay could cripple heavy long-positioned BTC traders in the short term with a significant correction, as the preview of that seen yesterday. However, any delay should only be temporary and create good buying opportunities for those who were late to spot the ETF rally train. 36,000 and just below 30,000 can become good entry points depending on the incoming news. However, an approval could mean another rapid upward movement, perhaps too fast to be caught by many. 48,600 and 56,400 could be the next two targets to follow. Bulls should be cautious about any “buy the rumor, sell the news” kind of action after the initial jump. After expecting and pricing for so long, a possible news-selling scenario has a decent probability.