Crypto News- Bitcoin (BTC) has found solid support above the $30,000 mark, with bullish momentum pushing towards the annual high at $31,000. Over the past week, the flagship cryptocurrency has sustained an upward trajectory, fueled by the fervent discussions surrounding the potential approval of BTC spot exchange-traded funds (ETFs) in the United States.
Bitcoin Price Forecast: With Heightened Spot ETF Speculation, Is BTC Challenging the Bearish Fractal?
The crypto community witnessed a surge in interest following false reports about the Securities and Exchange Commission (SEC) greenlighting BlackRock’s Bitcoin spot ETF proposal. These misleading reports prompted a rush among investors, particularly in the retail sector, to increase their exposure to BTC. This influx of interest has contributed to the current rally, with Bitcoin’s price rising by 2.6% in the past 24 hours. As of the latest market updates from CoinGape, Bitcoin is trading at $30,664.
The significant price increase, driven by misinformation about spot ETF approval, brings Bitcoin close to its yearly high of $31,000. Should an actual spot ETF receive approval, it has the potential to negate any prevailing bearish sentiment and serve as a launching pad for the early stages of the next bull market, leading up to the 2024 halving event.
A BTC spot ETF holds the promise of attracting significant capital from traditional investors who prefer purchasing shares of the product through conventional stockbrokers. This approach allows them to sidestep the complexities associated with directly acquiring digital assets on exchanges and the subsequent challenges related to crypto wallet management.
Challenging the Bearish Fractal: Bitcoin’s Price Potential
Bitcoin’s price is currently above a significant bullish pattern, as depicted by the double-bottom formation evident in the chart below. Following the breakout last week, the path of least resistance has been maintained to the upside, making it highly likely for BTC to overcome the resistance at $31,000, which marks the annual high. If this resistance is breached, it opens the door for potential gains to reach $33,577.
Traders supporting the upward momentum may find further encouragement in the Moving Average Convergence Divergence (MACD) indicator, which generated a buy signal on Monday, October 16.
The optimistic perspective gains further credibility with the emergence of a golden cross pattern, formed when the 21-day Exponential Moving Average (EMA) (represented in red) crossed over the longer-term 100-day EMA (displayed in blue).
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