Bitcoin Could Rise If New Nasdaq Product Is Approved by SEC

Bitcoin’s price has fallen again and is approaching the $60,000 level after hitting $64,000 last weekend. However, a trend reversal could be near due to Nasdaq, the largest exchange in the United States.

According to documents revealed on Tuesday (27), Nasdaq has filed a request to operate BTC index options. This request is in the hands of the US Securities and Exchange Commission, the SEC, which will analyze it and give its opinion.

The big highlight is that this fund intends to do these operations with Bitcoin ETFs. In other words, Nasdaq wants to connect its index fund to spot ETFs, something that the SEC has not yet allowed. If this happens, the measure could allow more traders to operate with leverage – and boost the price of BTC.

Nasdaq Details

Nasdaq has filed an application with the SEC for a license to offer and trade Bitcoin index options. If granted, the approval could be a game-changer for the largest cryptocurrency, as the regulator has yet to greenlight options connected to any ETFs.

Unlike ETFs, index options are not backed by Bitcoin but instead track its price. However, they will provide a quick but cheap product for investors to seek exposure.

Nasdaq’s proposed Bitcoin index options are expected to track the real-time performance of the CME CF Bitcoin Real-Time Index. This index created by the Chicago Mercantile Exchange (CME) monitors and tracks BTC futures and options contracts offered by the exchange.

Additionally, institutional traders and investors can use these options to hedge their exposure to the price of BTC. This can create hedging strategies for times of high volatility or correction in the market.

Bitcoin Analysis

Bitcoin price delicately stands on a cliff edge, considering the sharp correction from last week’s peak ($64,000) to below $62,000. Several potential support areas failed to protect BTC’s price, with the 50-day Exponential Moving Average (50 EMA) falling in the early morning.

There was also a sharp drop in the relative strength index (RSI) to 38, which indicates a spike in selling pressure. Buyers have a chance to halt the correction above the ascending trendline in the four-hour time frame, but it is too early to rule out an extended drop below $60,000.

The 200-day EMA at $61,421 could provide relief, allowing buyers to fight for space in the market based on the previous BTC price prediction. On the upside, dips could be profitable as traders can make price averaging strategies to maximize gains in the long run.

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