The Bitcoin price is steady at the time of writing, trading at around H2 2021 highs. Reading from price performance in the daily chart, buyers are firm and traders optimistic of what lies ahead.
The resurgence in price is at the back of strong fundamental factors ranging from thawing regulators, increasing adoption of BTC as a medium of exchange, and the formation of complex derivatives drawing institutional investors into the cryptocurrency.
Will the SEC Approve a Bitcoin ETF?
For now, the Bitcoin community has their fingers crossed, looking forward to the SEC’s comments in less than a week.
There have been several applications by some of the leading firms, including banks working in partnership with established crypto players, for the rollout of a Bitcoin ETF.
Partly because of this—and widespread unconfirmed rumors that the agency may finally approve a Bitcoin ETF for the first time after numerous rejections—BTC prices are expanding, printing higher above recent resistance levels in a buy trend continuation.
Thawing Regulatory Atmosphere: The U.S. Won’t Ban Cryptocurrencies
Additionally, to counter the decision by China of outlawing cryptocurrency trading and mining in their jurisdiction, the SEC chair, Gary Gensler, reiterated what the FED Chair, Jerome Powell, said that the country would embrace crypto, which relies on blockchain.
The U.S. won’t be banning cryptocurrencies despite what Gary said are identifiable gaps in policy. In the regulator’s view, some assets, like stablecoins—which quite literally anchor the sphere– might be considered investment contracts. Subsequently, applicable laws may be derived towards that end.
Bitcoin Price Analysis
At the time of writing, the BTC price is stable on the last trading day but up 22 percent week-to-date.
Technically, the path of least resistance is northwards. Accordingly, traders might be looking for entries in lower time frames, scooping the coin on every pullback.
From the performance in the daily chart, BTC is within a bullish breakout pattern. The close above August and September 2021 highs, for instance, is with decent trading volumes. While there is no follow-through, the trend is set, and every low provides entries for aggressive traders. The immediate support is the $53k level will targets remain at $60k and later $64k.
There are overvaluation concerns following the bear bar of October 7, which closed above the upper BB. However, if BTC prices are steady above $53k, the bullish breakout pattern will be valid.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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