As it climbs beyond $33,000, Bitcoin is causing a stir once more and fueling rumors of a potential “next wave” in the cryptocurrency space.
A billionaire’s decision to increase his gold and Bitcoin holdings amid worries about a significant decline in the value of the US dollar supports experts’ predictions of a likely financial upheaval.
An untrue rumor that claimed the US Securities and Exchange Commission (SEC) had approved a Bitcoin ETF fueled the fervor and sent the market into a frenzy that even damaged stablecoins like Ethereum and XRP.
Now that a US Bitcoin spot ETF is likely to be approved, the value of the cryptocurrency market might increase by a massive $1 trillion.
Traders, investors, and cryptocurrency aficionados worldwide watch for potential market tremors as the much-discussed Bitcoin halving event draws near.
US Court Orders Grayscale Verdict, Opening the Way for SEC’s Examination of Bitcoin Spot ETF
The US Court of Appeals has ordered the Securities and Exchange Commission (SEC) to reconsider Grayscale Investments’ request for a Bitcoin spot exchange-traded fund (ETF), which is a significant milestone.
This order is the result of a document filed on October 23 in the US Court of Appeals for the District of Columbia Circuit after the SEC decided not to appeal the court’s initial Aug. 29 judgment.
The Oct. 23 order gives Grayscale another chance to convert its Grayscale Bitcoin Trust into a Bitcoin ETF on the market, supporting the court’s Aug. 29 ruling.
While endorsing investments linked to Bitcoin and Ethereum futures, the SEC has continually refused to approve any spot crypto ETFs on US exchanges.
Grayscale furthered its position on October 19 by submitting a registration statement to the SEC in an effort to list its Bitcoin trust shares on the New York Stock Exchange Arca under the ticker symbol “GBTC.”
Similar spot crypto ETF applications from other large firms, including BlackRock, ARK Investment, and Valkyrie, are awaiting SEC approval.
Impact on Bitcoin Price: This development might increase the value of bitcoin. If Grayscale’s application is accepted, it might indicate growing institutional acceptance, which would boost the market’s liquidity and confidence.
In addition, anticipation and speculative activity might contribute to short-term price changes as significant organizations like BlackRock and ARK Investment wait for decisions on their applications.
Price Prediction for Bitcoin
The technical environment for Bitcoin (BTC/USD) on October 24 offered some intriguing analytical points. The cryptocurrency’s price was $33,500 as of my most recent check, reflecting a favorable 24-hour movement with a roughly 4.5% rise.
With a significant market capitalization of $625 billion, Bitcoin maintains its market-leading position. With around 18.6 million BTC now in circulation, the supply is very close to its 21 million ceiling.
The pivot point in the 4-hour chart was firmly established at $31,500. At $34,700, Bitcoin immediately encountered resistance. Then obstacles appeared at $36,071 and $38,770. On the downside, $30,335 provided instant support, which was followed by $29,201 and $28,403.
The technical indicators revealed additional levels of the story. Relative Strength Index (RSI) readings reached a high of 87. Such a figure, which is greater than 70, denotes an overbought market state and can portend an impending decline or consolidation.
Additionally, an RSI reading above 50 typically denotes optimistic market sentiment.
Traders frequently perceive a crossover as a significant shift in the trend’s direction. Additionally, the price is safely above the 50-day EMA’s $29,814.00 value, supporting the current short-term bullish trend. A decline below this level, however, would encourage pessimistic thinking.
Curiously, the daily period chart pattern showed “Three White Soldiers,” a bullish indication indicating ferocious buying activity.
If Bitcoin is unable to overcome this barrier, the elevated RSI and its struggles at the 1.414% Fibonacci extension mark at $34,700 may portend a bearish drop.
Bitcoin is likely to attempt the $36,071 level soon if it keeps pace and successfully passes the $34,700 barrier. On the other hand, failure to do so could result in a slide toward levels of immediate support.
Investors are always advised to do extensive research before making any investing decisions.