Bitcoin (BTC) Pumping Back to ETF Rumor High, No Smoke Without Fire?

Bitcoin (BTC) Prices, Charts, and Analysis:

• Bitcoin has rallied 10% this week (low-to-high) on ETF hopes.
• The 200-day simple moving average has turned from resistance to support.

The growing belief that a spot Bitcoin ETF is a matter of when not if, is pushing the largest cryptocurrency by market capitalization ever higher this week. On Monday a false rumor that the BlackRock ETF had been permissioned by the SEC sent BTC spiraling higher before the rumor was quickly proven to be false. The market sell-off however was limited and today Bitcoin traded back at Monday’s high of around $30k as markets continue to price in the probability that one or more spot Bitcoin ETFs will be announced soon.

While the fundamental backdrop for Bitcoin may be built on growing hope, the technical picture has turned bullish this week. The long-dated moving average (200-dsma) has been broken convincingly and has now turned from resistance to support. The midweek price action saw this moving average hold firm and today’s rally confirms that $28k should now be seen as support in the near-term at least. A series of higher lows and higher highs underpins the bullish outlook. The next level of resistance is seen around $31k before the 2023 high print at $31,796 comes into play.

Bitcoin (BTC/USD) Daily Price Chart – October 20, 2023

Bitcoin has rallied in excess of 80% this year and remains the dominant cryptocurrency coin by a wide margin. Bitcoin makes up just under 51.5% of the total market capitalization, currently USD1.14 trillion, with Ethereum second at 17.3%. Bitcoin has also outperformed Ethereum by a margin as well and with horizontal support still a little bit away, BTC may well continue to outperform the market in the short term.

Ethereum/Bitcoin Weekly Price Chart – October 20, 2023

Charts by TradingView

What is your view on Bitcoin – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.