Bitcoin (BTC) price is currently finding support above $30,000 as it aims to reach the yearly high at $31,000. The cryptocurrency has been on an uptrend since last week, fueled by speculation surrounding the approval of BTC spot exchange-traded funds (ETFs) in the US. Although the news about the Securities and Exchange Commission (SEC) approving BlackRock’s Bitcoin spot ETF proposal turned out to be fake, it still attracted retail investors to increase their exposure to BTC, contributing to the ongoing rally.
The approval of a spot BTC ETF would have significant implications for Bitcoin’s price. It would attract traditional investors who prefer buying shares through stockbrokers, bypassing the complexities of purchasing and storing digital assets directly. Additionally, it would validate Bitcoin as a mature asset and could act as a catalyst for a massive rally, especially when combined with the upcoming halving in 2024/2025.
A research report by JP Morgan suggests that multiple spot ETFs could be approved in the near future, following a court ruling in favor of Grayscale’s attempt to convert its Bitcoin Trust into an ETF. While the exact timing of the approval remains uncertain, it could happen within months.
From a technical perspective, Bitcoin’s price is currently trading above a key bullish pattern known as the double-bottom. The breakout last week has sustained the upside momentum, and BTC is expected to clear resistance at $31,000 and potentially reach $33,577. The bullish outlook is supported by indicators such as the Moving Average Convergence Divergence (MACD) and a golden cross pattern formed by the 21-day EMA crossing above the 100-day EMA.
However, there is still a possibility of a pullback below $30,000 if resistance at $31,000 holds. Bulls are currently focused on pushing for gains above $31,000 to validate the rally and target higher levels such as $33,577 and $35,000.
In conclusion, the approval of a spot BTC ETF could have a significant impact on Bitcoin’s price, attracting institutional investors and validating its status as a mature asset. From a technical standpoint, the current bullish momentum and key patterns suggest further upside potential. However, a pullback is still possible if certain resistance levels are not surpassed.
Hot Take: Bitcoin Price Rallies on Speculation of Spot ETF Approval
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