Hopes of approval for a spot Bitcoin (BTC) exchange-traded fund by the United States Securities and Exchange Commission (SEC) have caused a 27% increase in Bitcoin’s price in October. This positive sentiment has attracted aggressive buying by crypto investors. Bloomberg senior ETF analyst Eric Balchunas highlighted that the ProShares Bitcoin Strategy ETF (BITO), the first futures-based ETF to receive regulatory approval in the US this year, had its second biggest trading week ever at $1.7 billion. Similarly, Grayscale Bitcoin Trust (GBTC) recorded a volume of $800 million. This surge in volume indicates that spot Bitcoin ETFs are likely to experience high volumes once they are approved.
Altcoins have also seen strong performance as a result of Bitcoin’s rally, with many rising significantly from their multi-year lows. However, after the initial rally, some altcoins may struggle to maintain their upward momentum while others will lead the market higher. It is recommended to stick with the leaders as they are most likely to outperform during the next crypto bull phase.
Bitcoin Price Analysis
Bitcoin pulled back from $35,280 on October 24, showing that higher levels are attracting selling pressure from traders. However, solid buying at lower levels prevented a deeper pullback on October 27. The rising moving averages favor buyers, but overbought levels on the relative strength index (RSI) suggest that the BTC/USDT pair may consolidate further before resuming its uptrend. The important support levels to watch are $32,400 and $31,000, while breaking above $35,280 would indicate a bullish continuation towards the next target at $40,000.
Ether Price Analysis
Ether (ETH) broke above the resistance level at $1,746 on October 23 but faced selling pressure near $1,865 on October 26. The subsequent pullback found support at the breakout level of $1,746, suggesting that this level may act as a new floor. The rising 20-day exponential moving average (EMA) and the overbought RSI indicate that the bulls are in control. If buyers can push the price above $1,865, the ETH/USDT pair could rally to $2,000. On the downside, a sustained break below $1,746 could open the doors for a deeper correction. The short-term range is likely to be between $1,746 and $1,865.
Aptos (APT) Price Analysis
Aptos (APT) has seen a strong rally recently, indicating that the bulls are attempting a comeback. The pair faced profit-booking near $7 but managed to hold its ground, suggesting that every minor dip is being bought. Bulls will aim to overcome the resistance at $7 and start a march towards $8. However, if the price turns down from $7, it would suggest that bears remain active at higher levels. A range-bound action between $7 and $6.20 may follow, with a break below support signaling a deeper correction towards $5.80.
Quant (QNT) Price Analysis
Quant (QNT) broke above the breakdown level of $95 on October 23, indicating a rejection of lower levels by the market. The subsequent rally pushed the price above the downtrend line on October 25, signaling a potential trend change. However, short-term bulls have started booking profits, which may result in a drop to the downtrend line. This level is crucial because a break below it could invalidate the trend change and lead to further downside. On the other hand, if buyers hold the price above $110, it would indicate a resumption of the rally towards $120 and then $128.
THORChain (RUNE) Price Analysis
THORChain (RUNE) broke above the resistance at $2 on October 23, completing a bullish inverse head and shoulders pattern. Both moving averages are sloping up and the overbought RSI indicates that bulls are in control. However, a minor correction or consolidation may occur in the short term. Holding above the current level would suggest that bulls are maintaining their positions and could lead to a rally towards $3 and the pattern target of $3.23. On the downside, bears need to sustain the price below $2 to prevent further upside.
Hot Take: Bitcoin ETF Approval Boosts Crypto Market
The hopes of a Bitcoin exchange-traded fund (ETF) receiving approval from the SEC have caused a significant increase in Bitcoin’s price, attracting aggressive buying by investors. The approval of the ProShares Bitcoin Strategy ETF and strong volumes for Grayscale Bitcoin Trust indicate that spot Bitcoin ETFs will likely see high volumes when approved. This positive sentiment has also lifted altcoins, but it is recommended to stick with the leaders as they are expected to outperform during the next crypto bull phase.
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