– Bitcoin price almost rallied by 10% on the back of fake news of an ETF approval on Monday before falling back to $28,555.
– The second deadline for Fidelity, VanEck and WisdomTree applications is October 17, which will also be delayed.
– Despite the $86 million shorts liquidations on Monday, BTC investors managed to make money, with the NUPL, touching a two-month high.
Bitcoin price is still reeling from the surprise rally yesterday, which occurred due to the fake report spot BTC ETF being approved.But just as the market receives clarification, cryptocurrency is set to face another potential barrier.
Bitcoin faces the SEC once again
Bitcoin price, trading at $28,538 at the time of writing, made a splash on Monday following a rise arising from the fake report.The cryptocurrency shot up by more than 10% during the intra-day high before scaling back down to $28,500.This resulted in the market facing $86 million worth of short liquidations.
But even though the truth of the matter was revealed, the ETF saga has not come to an end.The Securities and Exchange Commission (SEC) is set to announce its decision regarding the spot ETF applications of Fidelity, VanEck and WisdomTree on October 17 (today).
Based on the comments of Bloomberg ETF analyst Eric Balchunas, the approval is likely going to be delayed until January 2024.
Bitcoin spot ETF deadlines
Should this happen, Bitcoin price will likely remain unaffected with a slightly bullish bias as it is trading at the moment.
The Net Unrealized Profit/Loss (NUPL) indicator, which estimates the total paper profits/losses in Bitcoin held by investors, is highly useful in tracking investor sentiment.At the moment, the NUPL is at a two-month high following the rally from Monday.
This suggests that investors are overall in profit and probably optimistic about further recovery but still cautious as a macro bullish signal has not yet been confirmed.
Bitcoin NUPL
This leaves BTC vulnerable to profit-taking as well, which could result in Bitcoin price correcting.
Bitcoin price to see green
Bitcoin price, which is presently hovering above the $28,500 mark, has managed to flip the resistance level of $28,354 into a support floor.This level is important for BTC if it intends to rally up to $30,000.
Since the broader
market sentiment is still bullish, BTC has a chance to climb further and breach $29,000.
The Relative Strength Index (RSI) suggests that the market is not too far from being overheated, and could be at risk of a correction.
BTC/USD 1-day chart
Even if it corrects,
Bitcoin price is likely, at most, to fall back down to $27,418, maintaining a bullish lead.However, should it lose this support as well as that of the 50, 100 and 200-day Exponential Moving Averages (EMA), the bullish thesis would be invalidated, sending the cryptocurrency below $27,000 and towards $26,483.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money.This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens.If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents.To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand.The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies.Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined.It provides a clear picture of Bitcoin’s interest among investors.
A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin.A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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