What’s Going on with the Largest Cryptocurrency Bitcoin
A couple of days ago, news that a Bitcoin exchange-traded fund could start trading as early as next week sent Bitcoin’s price to $62,922 but the rally has cooled off since then. Some people think that traders who bought the rumor of approval for a Bitcoin ETF may sell on the news.
Crypto trading firm QCP Capital has a different position. It said in an update that the approval of futures-based ETFs is unlikely to provide a long-term boost for Bitcoin’s prices similar to the one seen in the fourth quarter of 2020.
Investors should pay more attention to the major trend and not get caught in minor corrections that are part of the path to new all-time highs.
On October 15, Bitcoin surpassed the $58,000 resistance as well as the physiological mark at $60,000. The bears are trying to interrupt the up-move at $62,933 but the positive bulls have not given up much ground. This indicates that traders are not closing their positions after the recent up-move because they anticipate another leg up.
Both moving averages are increasing and the RSI is in the bought zone, suggesting that bulls are in the saddle. The RSI stands for the relative strength index. If the price of Bitcoin turns up from the current level and breaks above the $62,933 to $64,854 resistance zone, the BTC/USDT pair may rally to $75,000.
A break and close below $58,000 could trigger short-term traders to book profits. In that case, Bitcoin’s price could fell to the 20-day exponential moving average ($54,336).
Apart from Bitcoin, there are other interesting cryptocurrencies as well and one of them is Ether. Its break and close above the neckline on October 14 completed the inverse head and shoulders pattern.
The bears are trying to obstruct the up-move in the $4,000 to $4,027.88 zone. Let’s discuss one scenario if the price of Ether turns down from the current level. The ETH/USDT pair could decline to the breakout level at the neckline. Undoubtedly, this is an important support for the bulls to defend. If its price rebounds off this level, the bulls will once again try to clear the overhead hurdle.
A breakout as well as close above $4,027.88 could pave the way for a rally to the all-time high of $4,372.72. On the contrary, a break below the moving averages could sink the price to $3,257.
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