Contrary to popular media, Bitcoin does not need an ETF to remain relevant or to succeed. An ETF brings a large liquidity pool of money to the digital currency, but Bitcoin was never meant to be confined to rules and regulations. Unsurprisingly, SEC denial of the ETF was a large news event which allowed for easy selling pressure, down 25% on the day in an otherwise overbought market. Even without the ETF, Bitcoin gained large coverage on several news and media outlets that would not have otherwise covered digital currency — and there's no such thing as bad press.

After any large price drop or spike, two things tend to happen. First, price attempts to retrace to 50% of the move. This is referred to as Dow Theory. It happens so frequently that many traders, use a buy low and sell at the 50% retracement strategy. Price convincingly broke the 50% retracement level just over 10 hours after the drop.

Second, depending if the price movement is in the direction of the overall trend, price tries to retrace the entire move. This is referred to as Filling The Gap. This occurs because after a large move, there is little to no immediate support or resistance preventing the price from returning to its previous position. Gap filling occurs more frequently when it is supported by an active trend, as is the case currently with the bullish Bitcoin trend.

There is also an active chart pattern on low timeframes, the bull flag, which has a probability of continuation over reversal. The predicted move can be measured from the bottom of the pole to the top of the pole, projected upward from the tip of the triangle. This yields a target of ~$1278, thus filling the gap and treating the SEC decision as though it never happened.