The cryptocurrency market is experiencing a resurgence, with Bitcoin’s price rising by 27% in October. A crucial factor behind this bullish trend is the optimism surrounding the potential approval of a Bitcoin Exchange-Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC). This development has ignited a renewed sense of hope among crypto bubbles.
ETF Volumes Reflect Market Enthusiasm
Eric Balchunas, a senior ETF analyst at Bloomberg, emphasised the strong showing of the ProShares Bitcoin Strategy ETF (BITO), which, in 2021, became the first futures-based ETF in the US to receive regulatory approval. BITO witnessed its second-largest trading week ever, amassing $1.7 billion in volume. Moreover, the Grayscale Bitcoin Trust (GBTC) saw a trading volume of $800 million. These impressive volumes for existing instruments hint at the potential market enthusiasm and participation when spot Bitcoin ETFs eventually gain regulatory approval.
Crypto Patterns: Altcoins Ride the Bitcoin Wave
The impact of Bitcoin’s rally extends beyond its own price dynamics. Historically, when Bitcoin, the market leader, demonstrates a strong performance, the entire cryptocurrency sector tends to follow suit. This phenomenon has become evident in the substantial growth of altcoins. Many of these alternative cryptocurrencies have rebounded strongly from multi-year lows, taking advantage of the prevailing market sentiment.
Altcoin Selection: Best Staking Cryptos
Despite the overall upward trend among altcoins, it’s essential to exercise caution in selecting specific cryptocurrencies. While some altcoins will maintain their upward momentum, others may struggle to do so. Investors are encouraged to focus on the leaders in the cryptocurrency space, as they are often the most likely candidates for continued outperformance during the next phase of the crypto bull market.
Analysing Bitcoin’s Price Movement
Bitcoin’s recent crypto patterns demonstrate both promise and potential challenges. Following a climb to $35,280 on October 24, Bitcoin experienced a pullback, indicating that elevated price levels attracted selling pressure. Notably, on October 27, the market witnessed an attempt to initiate a deeper pullback. Still, the presence of a long tail on the candlestick pattern indicated strong buying interest at lower price levels.
A Delicate Balance for Bitcoin
As market indicators suggest advantages for buyers, the overbought levels on the relative strength index (RSI) point to a possible consolidation phase for the BTC/USDT pair. The critical levels to monitor on the downside are $32,400 and $31,000. A shift in control to sellers would require a price decline below this range.
Bitcoin Profit: Potential to Regain Dominance
In contrast, a price reversal and upward breakthrough beyond the $35,280 level would signify a resurgence of bullish sentiment. This outcome might propel the pair towards the next target objective at $40,000. Notably, the gradual flattening of the 20-day Exponential Moving Average (EMA) suggests a temporary consolidation period, potentially leading to a trading range between $35,280 and $33,200.
Ether’s Price Momentum: Is It Time To Sell Ethereum?
Ethereum (ETH), a significant player in the cryptocurrency market, recently surged above the $1,746 level on October 23, reaching $1,865 on October 26. However, this higher price level faced resistance and triggered a pullback toward the $1,746 support, which now acts as a potential new price floor.
Altcoin Opportunities and Crypto Bubbles
With the 20-day EMA at $1,693 and the RSI hovering near overbought levels, Ethereum’s bullish trajectory is apparent. Ethereum’s upward potential includes the endeavour to surpass the $1,865 level, which could catalyse a price rally towards $2,000. Investors should keep an eye on crypto bubbles that may benefit from Bitcoin’s strength and sustained market enthusiasm.