Bitcoin, Ethereum, Dogecoin Enter Cooling Period Following Game-Changing ETF Approval: A Look At The Price Action

Bitcoin (CRYPTO: BTC) was dropping almost 5% lower during Friday’s 24-hour trading session after rising up toward $50,000 on Thursday –the first trading day for 11 spot Bitcoin ETFs approved by the Security and Exchange Commission the day prior.

The SEC’s approval of the spot Bitcoin ETFs provides traditional finance with access to direct Bitcoin exposure. Previously, investors wanting regulated crypto exposure were limited to crypto-related stocks, primarily concentrated in the mining and trading of cryptocurrencies.

The first spot Bitcoin ETF to be approved by the federal agency was the Grayscale Bitcoin Trust ETF (ARCA: GBTC), which began trading at 4 a.m. EST on Thursday. Not only the first spot Bitcoin ETF to be approved, GBTC has the longest track record as the inaugural publicly traded Bitcoin fund in operation after being created in 2013 and is the world’s largest Bitcoin ETF.

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GBTC is also highly liquid, offering traders and investors a high level of flexibility to manage their trades, with an average 20-day trading volume of about 15,000 shares.

While the approval of the spot Bitcoin ETFs caused Bitcoin and Ethereum (CRYPTO: ETH to run higher into the event, Dogecoin (CRYPTO: DOGE) has lagged the apex-cryptos, trading in a downtrend since Dec. 11.

Whether or not Bitcoin continues higher on a historic run or the SEC’s approval creates a long-term sell-the-news event remains to be seen but new institutional and retail investors with access to the crypto through Grayscale’s ETF, or one of its rivals, maybe watching for cues on Bitcoin’s chart as the news settles in.

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The Bitcoin Chart: When Bitcoin fell to its low-of-day Friday, the crypto bounced up slightly from the $43,130 mark, which caused Bitcoin to print a possible double bottom pattern at that level when paired with the low formed on Monday. If Bitcoin holds above that area, it would be bullish for continuation higher but if Bitcoin falls under that level on the weekend, the current uptrend will be negated and a downtrend…