Bitcoin’s trajectory is in the spotlight as speculation about Spot ETF approval surges. Can the cryptocurrency invalidate its bearish pattern and embark on a bullish journey? In a landscape of financial uncertainty, Bitcoin’s potential to redefine market dynamics captivates the attention of both investors and enthusiasts eager to see if it can break free from its bearish trend.
Bitcoin (BTC) enthusiasts and investors around the world are closely monitoring the cryptocurrency’s price movements as it teeters on the edge of potentially invalidating a long-standing bearish fractal pattern. The digital currency, which has experienced a rollercoaster of price fluctuations in recent months, is now within reach of validating an ongoing uptrend and possibly kickstarting a significant bull run.
Bitcoin Finds Support Above $30,000
Bitcoin’s price has found much-needed support above the crucial $30,000 mark, and the bulls are pushing toward the annual high of $31,000. This renewed optimism comes as the cryptocurrency market buzzes with anticipation surrounding the potential approval of Bitcoin spot exchange-traded funds (ETFs) in the United States.
The catalyst for this recent surge in enthusiasm was a spate of fake news regarding the Securities and Exchange Commission (SEC) greenlighting BlackRock’s Bitcoin spot ETF proposal. The false reports spurred a frenzy among retail investors, prompting a surge in BTC investments and igniting the current rally. As of the most recent market data provided by BTCLetter, Bitcoin is trading at $30,664, having gained 2.6% in the past 24 hours.
The looming approval of a Bitcoin spot ETF holds the promise of potentially invalidating the prevailing bearish sentiment that has been affecting the cryptocurrency market. It could serve as the impetus for the early stages of a robust bull market, setting the stage for the next Bitcoin halving event expected in 2024.
The approval of a BTC spot ETF is anticipated to attract substantial investments from traditional investors, who prefer to acquire shares of such products through conventional stockbrokers. This method would circumvent the complexities associated with directly purchasing and storing digital assets in crypto wallets.
Furthermore, approval of a spot ETF would signify the maturation of Bitcoin as a legitimate asset, a milestone long-awaited by the cryptocurrency community. It’s the influx of funds from institutional investors in traditional markets that is predicted to trigger a substantial rally. When combined with the upcoming halving event, these factors could pave the way for the 2024/2025 bull run.
A recent research report from JP Morgan, released last Wednesday, speculates that multiple spot ETFs may be approved, especially following the SEC’s decision not to appeal a recent court ruling in the Grayscale case. Grayscale, the largest digital asset manager, had sought to convert its Grayscale Bitcoin Trust (GBTC) into a spot ETF. The timing of such approvals remains uncertain but could happen within months.
Bitcoin’s price is currently trading above a critical bullish pattern, depicted as a double-bottom formation. The path of least resistance, since the breakout that occurred last week, continues to trend upwards, with BTC on the verge of surpassing the $31,000 resistance level (the yearly high) and aiming for $33,577 in gains.
Traders betting on the bullish trend are taking cues from the Moving Average Convergence Divergence (MACD) indicator, which recently issued a buy signal on October 16. Another validation comes from the formation of a golden cross pattern, with the 21-day Exponential Moving Average (EMA) crossing above the longer-term 100-day EMA.
Noted analyst and trader Rekt Capital pointed out that “A clean break of the ~$31,000 highs is the final step to fully invalidating the Bearish Bitcoin Fractal.” However, it’s essential to acknowledge that a pullback below $30,000 is still a possibility, particularly if the resistance at $31,000 remains resilient.
For the time being, bullish sentiment prevails, with Bitcoin enthusiasts focusing on surpassing the $31,000 threshold. If this level is breached and held, it could usher in the validation of the rally and potentially set the stage for the double-top pattern’s breakout target at $33,577, and perhaps even higher, beyond $35,000.