The price of Bitcoin tapped highs above $30,000 this week before settling around $29,500 at the time of writing. Traders are closely watching the weekly candle close to determine the staying power of the recent rally.
Keypoints
- Bitcoin price tapped $30,000 on October 20 before pulling back below $29,500.
- Traders are focused on the weekly candle close to determine if the rally has true staying power.
- The 100-week moving average around $28,600 is seen as important support to hold the bullish move.
- If $28,900 level holds into the weekly close, it would reinforce the rally per analysts.
- Some traders expect a sweep of leveraged long traders before upside can resume after this consolidation.
- A trading team foresees resistance near $30-32k breaking soon, predicting an ETF trigger will drive mass adoption.
- Their bull case targets $50,000+ if BlackRock launches a spot Bitcoin ETF product.
- An ETF could bring in $50 billion investment from registered advisors, boosting Bitcoin per a Matrixport report.
If the 100-week moving average near $28,600 holds into the weekly close, it would validate the bullish move so far per analysts. Some are also monitoring the $28,900 level as key support for Bitcoin to hold.
The rally comes as optimism builds around a potential spot Bitcoin exchange-traded fund (ETF) approval which could act as a catalyst for major upside. A report from Matrixport predicts Bitcoin could surge to $50,000+ if BlackRock launches a spot BTC ETF product.
The analysts estimate up to $50 billion could flow into Bitcoin from registered investment advisors embracing the BlackRock iShares offering. This massive potential inflow leads them to forecast an upside target of $50,000+ if conditions align.
However, some traders expect a sweep of overleveraged longs to trigger a pullback before significant resistance around $30-32K can be broken decisively. Nonethless, market sentiment has clearly improved in recent weeks.
Meanwhile, Tesla’s latest quarterly financials revealed it has now paused Bitcoin transactions for five straight quarters. This suggests crypto is not a strategic focus for the automaker currently as it prioritizes cost cuts and volume growth amid global economic challenges.
As Bitcoin consolidates following its push above $30,000, the weekly close will be crucial for analyzing the rally’s durability and upside potential based on key levels holding.
