With price activity pointing to a potential breakthrough that might raise the bar for the original cryptocurrency, Bitcoin is poised for a historic moment. Bullish optimism prevails in the market, and a price spike might occur due to the impending approval of a Bitcoin ETF.
Having retreated, market makers have set the stage for a big move; the next week’s release of the Bitcoin ETF has the potential to ignite a wick over the all-time high with a small number of large orders.
The Bitcoin chart, when analysed technically, shows an asset in a poised state, with support levels remaining steady and local resistance being challenged. A cursory look at the chart shows that the 200-day moving average is charting an even steeper rise, further reinforcing the bullish setup, while the 50-day moving average is considerably below the present price, serving as a solid support level. A strong break over the crucial resistance level that the price is now hovering around might herald the beginning of a major rally.
The quantity of open positions betting against Bitcoin suggests that there is a good chance of a short squeeze. A significant rebound might occur if traders start to exit their short positions in large quantities, either by taking gains or by being driven out by stop losses. This would push prices up towards psychological levels of $50,000, $55,000, and $60,000. Traders may encounter temporary obstacles in the form of these round figures, but once they are overcome, it becomes obvious how to go on to greater levels.
Moreover, the volume profile indicates a significant accumulation in the present range, corroborating the notion of a solid base for upward movement. The neutral zone on the Relative Strength Index (RSI) suggests that there is still opportunity for growth before the asset is considered technically overbought.
