Golden Cross Pattern Fails to Inspire Higher Prices, What Next?

BITCOIN, CRYPTO KEY POINTS:

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Bitcoin prices have taken a bit of a breather since the expansive rally that broke above the $35k mark last week Tuesday. Since then, it appears to be a case of uncertainty and rangebound trade but Bitcoin remains underpinned by hopes of the BlackRock Spot Bitcoin ETF approval.

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A sign of the strength and confidence from bulls is the lack of a significant pullback despite a resurgence in the DXY. The resurgence which has see many FX pairs and Gold lose ground to the Greenback has had very little impact on the price of Bitcoin. There has been a sizeable shift in market sentiment around Crypto markets and Bitcoin in particular over the past month or so. This is reflected in the image below as the crypto fear and greed index has risen from 48 a month ago to 66 today, which keeps it in “Greed” territory.

Source: FinancialJuice

The world’s largest cryptocurrency ad crypto markets faced calls that it was dying toward the back end of 2022 before becoming the best performing asset of 2023. It does appear however that Crypto and blockchain technology are on their way to mainstream adoption. This is evidenced by the countless number of global institutions like JPMorgan, BNP Paribas and Santander are among those who are currently involved in various blockchain projects.

The hype around the ETF is justified as we have heard comments from many asset managers and CEOs confirming they are fielding many enquiries and calls regarding diversification into Crypto. This hype seems to be underpinning Bitcoin right now so if we do have a rejection of the BlackRock Bitcoin ETF then we could be in for a deeper retracement. Right now, it does appear that that markets are leaning on the side of an approval, will we get it though?

Source: TradingView

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TECHNICAL OUTLOOK AND FINAL THOUGHTS

From a technical standpoint BTCUSD is currently stuck in a 2k range between the $33.3k and $35.3k. Price action is choppy as we appeared ready to make a new high before a bearish doji candle close yesterday hinting at a fresh low. However today we have seen the $34177 support area hold firm with the daily candle looking likely too close as a hammer candlestick. The question will be whether we can push on to make a fresh high above the $35.3k.

Of course, we have the US FOMC meeting tomorrow evening which could stoke some volatility. However, looking at the resilience in Bitcoin today, I’m hesitant to say that a hawkish Fed will push Bitcoin prices lower. Today saw a sizeable rally in the DXY and still Bitcoin prices have held the high ground, a sign of the buying pressure still present.

Key Levels to Keep an Eye On:

Resistance levels:

Support levels:

BTCUSD Daily Chart, October 31, 2023.

Source: TradingView, chart prepared by Zain Vawda

— Written by Zain Vawda for DailyFX.com

Contact and follow Zain on Twitter: @zvawda