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
