Bitcoin price to see $30,000 again if BTC investors do not resort to profit-taking for the next week
- Bitcoin price almost rallied by 10% on the back of fake news of an ETF approval on Monday before falling back to $28,555.
- The second deadline for Fidelity, VanEck and WisdomTree applications is October 17, which will also be delayed.
- Despite the $86 million shorts liquidations on Monday, BTC investors managed to make money, with the NUPL, touching a two-month high.
Bitcoin price rose considerably on Monday even though the trigger was a fake report. It still managed to generate profits for investors, who are now a threat to the further growth of the cryptocurrency.
Bitcoin faces the SEC once again
Bitcoin price, trading at $28,538 at the time of writing, made a splash on Monday following a rise arising from the fake report. The cryptocurrency shot up by more than 10% during the intra-day high before scaling back down to $28,500. This resulted in the market facing $86 million worth of short liquidations.
But even though the truth of the matter was revealed, the ETF saga has not come to an end. The Securities and Exchange Commission (SEC) is set to announce its decision regarding the spot ETF applications of Fidelity, VanEck and WisdomTree on October 17 (today). Based on the comments of Bloomberg ETF analyst Eric Balchunas, the approval is likely going to be delayed until January 2024.
Bitcoin spot ETF deadlines
Should this happen, Bitcoin price will likely remain unaffected with a slightly bullish bias as it is trading at the moment.
The Net Unrealized Profit/Loss (NUPL) indicator, which estimates the total paper profits/losses in Bitcoin held by investors, is highly useful in tracking investor sentiment.At the moment, the NUPL is at a two-month high following the rally from Monday. This suggests that investors are overall in profit and probably optimistic about further recovery but still cautious as a macro bullish signal has not yet been confirmed.
Bitcoin NUPL
This leaves BTC vulnerable to profit-taking as well, which could result in Bitcoin price correcting.
Bitcoin price to see green
Bitcoin price, which is presently hovering above the $28,500 mark, has managed to flip the resistance level of $28,354 into a support floor. This level is important for BTC if it intends to rally up to $30,000.
Since the broader market sentiment is still bullish, BTC has a chance to climb further and breach $29,000. The Relative Strength Index (RSI) suggests that the market is not too far from being overheated, and could be at risk of a correction.
BTC/USD 1-day chart
Even if it corrects, Bitcoin price is likely, at most, to fall back down to $27,418, maintaining a bullish lead. However, should it lose this support as well as that of the 50, 100 and 200-day Exponential Moving Averages (EMA), the bullish thesis would be invalidated, sending the cryptocurrency below $27,000 and towards $26,483.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.