Bitcoin Breaks Psychological 30k Level as Spot ETF Approval Hopes Grow

BITCOIN, CRYPTO KEY POINTS:

READ MORE: Oil Weekly Forecast: Technicals Hint at Further Upside but Geopolitics Holds the Key

Looking for actionable trading ideas? Download our top trading opportunities guide packed with insightful tips for the fourth quarter!

Bitcoin Rally Gathers Pace as ETF Optimism Builds

Bitcoin prices have continued their upward trajectory following a spike last week on the Blackrock Spot ETF application. The news turned out to be false but optimism continues to grow coupled with positive news for the cyrpto industry as a whole and the result is the current rally beyond the 30k mark.

Source: TradingView

As you can see from the crypto heatmap above and the majority of coins are higher today while crypto companies appear to be benefitting as well. Coinbase being an example and the reason I am using them lies in the pending court case between the SEC and Coinbase. The crypto platform is expected to make a final case on Tuesday for a judge to hopefully save it from the SEC and the charges of unregistered-securities.

According to sources familiar with the matter the Company is expected to double-down on familiar arguments. The SEC has not shown that any actual contracts existed while violating the “major question doctrine” that says Federal Agencies have no business regulating novel areas that are awaiting congressional action. Coinbase has been making a steady move higher from the back end of last week.

The recent rally has seen a shift in the Crypto fear and greed index which has improved from a 47 reading last week to 53 this week. This is just below the greed area and could be a good sign for both Bitcoin and Crypto markets as a whole.

Source: FinancialJuice

READ MORE: HOW TO USE TWITTER FOR TRADERS

SPOT ETF APPROVAL COULD SEE HUGE INFLUX OF INSTITUTIONAL FUNDS

The main catalyst for this quarter in my opinion is the spot Bitcoin ETF with the spike last week a sign of the possibilities. We have heard from the Blackrock CEO among others who have said they are fielding an unprecedented number of calls from clients who would like to diversify their portfolios in Crypto as well.

I have spoken about this in length in my Q4 Bitcoin Outlook and it remains my assertion that a spot Bitcoin ETF could be game changer. Some analysts are predicting as much as 10-20% gains in Bitcoin on the immediate approval followed by a massive influx of institutional investors to the crypto market and predominantly Bitcoin of course.

Elevate your trading skills and gain a competitive edge. Get your hands on the Bitcoin Q4 outlook today for exclusive insights into key market catalysts that should be on every trader’s radar.

TECHNICAL OUTLOOK AND FINAL THOUGHTS

From a technical standpoint BTCUSD is following the perfect breakout, retest and continuation model following a trendline break. We have no printed two golden cross patterns in quick succession as the 20-day MA has broken above the 50 and 100-day MAs.

A daily candle close above the 30k psychological mark remains key today and loos set to materialize. Immediate resistance rests at around the 31.5K mark and could result in some pullback as the 14-day RSI remains uncomfortably close to highs and may give bulls something to consider moving forward.

Key Levels to Keep an Eye On:

Support levels:

Resistance levels:

BTCUSD Daily Chart, October 23, 2023.

Source: TradingView, chart prepared by Zain Vawda

— Written by Zain Vawda for DailyFX.com

Contact and follow Zain on Twitter: @zvawda