Chart of the day - Bitcoin (20.10.2023) 🚀

8:04 AM 20 October 2023

As market attention is focused on the actions of the Fed and rising geopolitical tensions, the main cryptocurrency, Bitcoin, is gaining momentum and approaching a key threshold.

Several key pieces of information have emerged on Bitcoin, leading to improved market sentiment. Moreover, each subsequent piece of potentially market-scaring news increasingly results in fewer declines, indicating investors' reluctance to sell Bitcoin at current levels. A few facts to consider:

  • The false news about Blackrock's Bitcoin ETF application acceptance on October 16th showcased to investors the potential for growth upon official application approvals. Bitcoin gained 10% in just a few seconds, with the price nearing 30k USD.

  • According to many analysts, including those from Blackrock, the chances of ETF application acceptance have risen to over 90%. Individuals directly involved with Blackrock claim that such an application will be accepted within 3-6 months.

  • The deteriorating situation of Chinese regional banks was another stimulus driving capital inflow into Bitcoin on October 16th.

  • Last evening, it was revealed that the federal court is ready to formalize Grayscale's victory over the Securities and Exchange Commission in a dispute about the spot bitcoin ETF application. This means the SEC did not win, allowing for a reapplication for a Bitcoin spot ETF, which Grayscale proceeded to do.

  • Grayscale Investments submitted a new application to the SEC after the Appellate Court ruled that the regulator must re-examine the company's application.

Bitcoin's price has been following a stable upward channel, forming higher lows, since mid-September 2023. Bitcoin broke above the resistance at 28,200 USD on October 16th, and despite a quick correction, it did not return below this zone. Currently, the price is heading towards another resistance zone at 29,700 - 30,000 USD. This is a key level, the breach of which previously caused a drop to 25,000 USD. On-chain data, indicating that over 75% of investors are long-term, combined with the upcoming halving, should positively impact Bitcoin's price.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits