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⚡BTC Bulls Push for $39,000🍿

Croxroad

27 Oct 2023 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

👀 Bitcoin's Price Rally

Digital currencies have seen a remarkable surge in value, driven by the optimism surrounding the potential approval of a bitcoin exchange-traded fund (ETF) in the United States. Concerning Bitcoin, it has recently achieved a significant milestone, breaking through a key resistance level at 31,800. This breakthrough signalled the emergence of a double bottom pattern, with the lows from both June and September 2023, raising hopes for further price gains, potentially pushing Bitcoin's value up to the 39,000 mark. The increase in momentum was underscored by its breach of the 200-day moving average, which roughly coincided with the end-August high of 28,150. On a broader scale, the weekly charts indicate a positive shift as Bitcoin climbed out of the bearish Ichimoku cloud – a positive development not seen since 2021. These technical indicators suggest an encouraging trajectory for Bitcoin's price.

Last month, we witnessed signs of a positive upturn following a rebound from solid support at the June low of 24,750. This rebound effectively maintained the pattern of higher highs and higher lows that has been in place since the end of 2022. Notably, this ongoing pattern preserves the potential for a sustained recovery, which is crucial given the decline experienced in 2021-2022.

At present, it appears that any potential declines may be restricted, as there is immediate support provided by the 10-hour moving average, currently situated at approximately 34,000. Furthermore, there is more robust support available through the 30-hour moving average, which is presently around 31,600. These levels of support suggest that significant downward movements may be limited for the time being.

✴️ U.S. SEC Reviews 8-10 ETF Filings

The U.S. Securities and Exchange Commission (SEC) is currently reviewing between eight to ten proposals for exchange-traded products related to bitcoin. This news has stirred up excitement in the Bitcoin world, with Bitcoin experiencing a surge in value. The reason for the optimism is that the SEC is considering the approval of a spot bitcoin exchange-traded fund (ETF), which is highly anticipated because it would make it easier for investors to gain direct exposure to Bitcoin through a publicly traded product. This development is seen as a potential catalyst for increased demand for the Market.

Up until now, the SEC has given its approval exclusively to ETFs linked to bitcoin futures contracts.The Bitcoin, was experiencing a slight dip, down 1.6% at $33,958 during mid-day trading, despite having gained nearly 14% throughout the week. SEC Chair Gary Gensler hinted that these new ETF proposals could potentially reach the five-member commission for consideration. He refrained from making any preemptive judgments on their fate and emphasised the varied submission timelines for each proposal. Notably, Cathie Wood's ARK Invest application is leading the pack, with the 240-day SEC comment period set to expire on January 10, 2024. Regulators will need to make a decision, either approving or rejecting it, by that date. Maxis eagerly awaits the SEC's decisions in this evolving landscape.

Several notable firms, including BlackRock, Bitwise, WisdomTree, Fidelity, and Invesco, have submitted applications for bitcoin funds in the United States, adding to the growing interest in spot ETFs. This enthusiasm has been mounting since the SEC chose not to challenge a court ruling that found its previous rejection of Grayscale Investments' application to convert its existing bitcoin trust into a spot bitcoin ETF was incorrect. The court has directed the SEC to reevaluate its decision, further fueling expectations for the approval of spot ETFs related to bitcoin. This development is closely watched by the financial industry and the Bitcoin community alike.

⭐ The Evening Star

The Evening Star is a candlestick pattern that typically emerges after an uptrend, signalling a potential shift towards a bearish reversal in the market. This pattern consists of three distinct candlesticks. The first candle is a bullish one, denoting the ongoing uptrend. The second candle is a doji, reflecting market indecision or uncertainty. Finally, the third candle is a bearish one, indicating that bearish sentiment is resurfacing, and a reversal may be imminent. Notably, the second candle (the doji) should have no overlap with the real bodies of the first and third candles, emphasising the significance of this pattern in predicting a potential trend reversal. Traders often use the Evening Star pattern as a signal to consider bearish positions in the market.