Optimism Over Bitcoin ETF Approval Boosts Cryptocurrency Sector, Bullish Trends Evident
Summary:
Driven by anticipation of a Bitcoin Exchange-Traded Fund (ETF) approval by the U.S. Securities and Exchange Commission, Bitcoin's price saw a 27% boost in October. Influenced by this favorable market sentiment, altcoins have also witnessed strong performance. As per price analysis, Bitcoin, Ether, Aptos, Quant, and THORChain could potentially continue their upward trajectory, despite pullbacks and possible consolidations.
The 27% increase in Bitcoin's price in October was fueled by anticipation of a Bitcoin Exchange-Traded Fund (ETF) getting the go-ahead from the U.S. Securities and Exchange Commission. These optimist sentiments led to high-volume purchases by cryptocurrency enthusiasts.
Bloomberg's Senior ETF Analyst, Eric Balchunas, highlighted in a social media post that ProShares Bitcoin Strategy ETF (BITO), the first futures-based ETF approved in the U.S. this year, registered its second highest trading week worth $1.7 billion. Concurrently, Grayscale Bitcoin Trust (GBTC) recorded $800 million in volume. This surge in trade volumes indicates that a jump in volumes is also likely for spot Bitcoin ETFs once they debut.
When a market leader like Bitcoin performs well, it often leads to a boost in the entire sector. This effect has been seen in the strong performance of alternative currencies (altcoins), bouncing back healthily from their multi-year lows. Following an initial upswing, some altcoins may struggle to sustain their ascent, while others may continue to lead markets higher.
Upon analyzing Bitcoin, we noticed that it bounced back from $35,280 on Oct. 24, suggesting that selling by traders is being attracted at higher levels. Despite an advantageous market for buyers indicated by rising moving averages, the overbought positions on the relative strength index (RSI) suggest that the Bitcoin pair may consolidate for a while. For the bulls to regain control, Bitcoin would need to break past $35,280 and potentially surge towards $40,000.
In the case of Ether, it eclipsed the $1,746 resistance on Oct. 23, and reached $1,865 on Oct. 26. Short-term traders sold at this peak, pulling back its price towards the $1,746 breakout level. If the current Ether pair rises above $1,865, it could soar towards $2,000.
Meanwhile, Aptos witnessed a sharp rally, indicating a possible bull comeback. However, the APT pair faced profit-booking at $7. For the next recovery phase, the bulls will need to spearhead the price past $7.02.
As for Quant, it crossed the breakdown level of $95 on Oct. 23, indicating market resistance towards lower levels. The bulls will need to clear the $110 hurdle for the rally to resume its upward climb.
Lastly, THORChain registered a bullish inverse head and shoulders pattern when it surpassed the overhead resistance of $2 on Oct. 23. For the rally to continue towards $3.23, the bulls will need to maintain the price above $2.
Disclaimer: This report is for informational purposes. Each trade move holds risks, and readers must conduct their research before making a decision.
Published At
10/29/2023 9:19:01 PM
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