. Daily Crypto Analysis - Bitcoin Soars Toward $28,000 on US ETF and Low Inflation

Daily Crypto Analysis – Bitcoin Soars Toward $28,000 on US ETF and Low Inflation

Daily Crypto Analysis – Bitcoin Soars Toward $28,000 on US ETF and Low Inflation

16 Oct 2023

Introduction:

Bitcoin is making a strong move towards $28,000, surging 4.5% in Asian trading hours, driven by mounting anticipation of a US Bitcoin Exchange-Traded Fund (ETF) approval. The cryptocurrency’s value received a significant boost following the SEC’s decision not to appeal a court ruling related to Grayscale’s bitcoin trust, potentially paving the way for the Grayscale Bitcoin Trust (GBTC) to transform into the first US ETF. Amidst a low inflation environment and escalating geopolitical tensions, Bitcoin’s value is underpinned by a sense of optimism. In the broader crypto market, Ethereum (ETH) faces a downward trend, while XRP shows signs of potential recovery.

Bitcoin:

Bitcoin approaches $28,000 on US ETF approval anticipation.

As of Monday, the value of bitcoin was close to $28,000, up 4.5% during Asian trading hours. Elevated expectations of a US Bitcoin Exchange-Traded Fund (ETF) approval caused the cryptocurrency’s value to surge after the Securities and Exchange Commission (SEC) decided not to appeal a court decision concerning Grayscale’s bitcoin trust.

The Grayscale Bitcoin Trust (GBTC), the first ETF in the US, may become an ETF as a result of the SEC’s inaction. This trend has led traders to anticipate that the value of Bitcoin will continue to grow.

The low inflation environment that has been in place recently, as evidenced by the Consumer Price Index’s 0.2% decline from August statistics, and the rising geopolitical tensions also have an impact on the price of bitcoin.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 27285.45 | Positive Crossover | Bullish
  • MA 20: 27149.37| Positive Crossover | Bullish
  • MA 50: 27098.53| Positive Crossover | Bullish

Simple:

  • MA 5: 27091.74 | Positive Crossover | Bullish
  • MA 20: 27235.93| Positive Crossover | Bullish
  • MA 50: 26650.35 | Positive Crossover | Bullish

RSI (Relative Strength Index): 58.57| Buy Zone |Bullish

Stochastic Oscillator: 39.37 | Sell Zone | Positive

Resistance And Support Levels:

  • R1: 27981.16| R2: 29990.75
  • S1: 26711.95 | S2: 25284.08

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 28336.97 | Take Profit: 29990.75 | Stop Loss: 27351.13.

Elsewhere In the Crypto Market

Ethereum (ETH) price has been on a downtrend for the past several weeks recording lower lows and lower highs. XRP price was in the red over the last couple of days but could be seeing some recovery in the coming days.

Bitcoin up (2.17%) at 27765.00, Ethereum up (1.79%) at 1,585.8, Litecoin up (2.18%) at 62.93, Solana up (4.82%) at 23.03, Doge coin up at (1.03%) at 1.01 as of writing time.

Key Economic Events & Data Release Today:

(GBP) BoE MPC Member Pill Speaks at 14:00. 

(USD) FOMC Member Harker Speaks at 20:00.