π‘ Hopes of approval for a spot Bitcoin exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC) have significantly boosted Bitcoin’s price. In fact, Bitcoin’s price rose by 27% in October following news of potential regulatory consent for a Bitcoin ETF. This positive sentiment has attracted aggressive buying from crypto investors.
According to Bloomberg senior ETF analyst Eric Balchunas, the first futures-based ETF to receive regulatory consent in the U.S. in 2021, ProShares Bitcoin Strategy ETF (BITO), saw its second biggest trading week ever at $1.7 billion. Additionally, Grayscale Bitcoin Trust (GBTC) recorded a volume of $800 million. These increased volumes suggest that spot Bitcoin ETFs will likely attract substantial trading volumes once they are approved.
The strong performance of altcoins, which have experienced significant gains from their multi-year lows, is also indicative of the overall positive sentiment in the cryptocurrency market. However, it is important to note that after an initial rally, some altcoins may struggle to maintain their upward movement, while others may continue to lead the market higher. It is advisable to stick with the leaders as they are expected to outperform during the next crypto bull phase.
In terms of specific cryptocurrencies, let’s analyze the charts of the top-5 cryptocurrencies that may continue to rally in the next few days:
– Bitcoin (BTC): The price of Bitcoin pulled back from $35,280, indicating selling pressure from traders. However, solid buying at lower levels prevented a deeper pullback. The rising moving averages suggest an advantage for buyers, but the overbought levels on the relative strength index (RSI) indicate potential consolidation in the near future. Key support levels to watch out for are $32,400 and $31,000, while a break above $35,280 would indicate a resumption of the bullish trend with a target objective of $40,000.
– Ethereum (ETH): After breaking resistance at $1,746, Ether climbed to $1,865 before experiencing selling pressure. The successful defense of the retest to $1,746 suggests that this level may act as a new support. The rising 20-day EMA and the overbought RSI indicate bullish momentum. Breaking above $1,865 could lead to a rally towards $2,000, while a drop below $1,746 may result in a deeper correction towards the 20-day EMA.
– Aptos (APT): Aptos rallied sharply, indicating a potential comeback for the bulls. While profit-booking was seen near $7, the bulls did not give up significant ground, suggesting buying pressure. The resistance levels to watch are $7 and $8, while a break below $6.20 could trigger a deeper correction.
– Quant (QNT): Quant broke above the breakdown level of $95, confirming a trend change. Short-term profit-taking may lead to a minor correction or consolidation, with the downtrend line as a crucial level to monitor. A drop below this line may indicate a bull trap, while a rebound would suggest that the bulls are maintaining control. Breaking above $110 could lead to further gains towards $120 and $128.
– THORChain (RUNE): THORChain closed above the overhead resistance of $2, completing a bullish inverse head and shoulders pattern. The bullish momentum is supported by the upward sloping moving averages and the overbought RSI. While a minor correction or consolidation may occur in the short term, holding above current levels would favor a rally to $3 and potentially $3.23. To prevent this uptrend, bears would need to sustain the price below $2.
It is important to note that this article does not provide investment advice, and readers should conduct their own research and exercise caution when making investment decisions.