Bitcoin's Wild Ride Amid ETF RumorsBitcoin's price surged by 10% in the early hours of New York trading after news broke that the U.S. SEC had approved the iShares Spot BTC ETF. However, this uptick was short-lived due to the confirmation that the news was false.
Long-time traders who had opened short positions faced significant losses, with nearly $80 million in short positions liquidated, alongside about $18 million in long positions. This reaction could signal a potential market crash if the U.S. SEC indeed approves the immediate BTC ETF, an outcome it's currently considering. The false rumors pushed Bitcoin's price down to the $28,000 range, with the Relative Strength Index (RSI) holding above 50.
The unusually long daily candlestick resulting from these mistaken speculations resembles a true 'exhaustion candle' and might indicate an upcoming reversal in the short-term uptrend, hinting at vulnerabilities ahead. Bitcoin's price could lose its entire foundation by October 16, potentially dropping below the psychological support level at $26,000. Breaking below this trendline would confirm even deeper losses.
Only a daily candle closing above the resistance level at $29,747 could confirm the uptrend, paving the way for an extension towards the psychological level of $30,000. In a strong bullish scenario, Bitcoin might surpass July's peak, reaching the upper range of $31,804. Such a move would represent a 15% increase from the current level.
Stay tuned for more updates as Bitcoin navigates these volatile market conditions.
