Bitcoin may resume growth in the middle of the week

17 October 2023 153
Bitcoin may resume growth in the middle of the week

On Monday, the bitcoin price temporarily approached the $30,000 mark after a report from Cointelegraph about the alleged approval by the US Securities and Exchange Commission (SEC) of the iShares Spot Bitcoin ETF application. However, Bloomberg soon denied this information, and the bitcoin exchange rate returned to around $28,000. The rumor turned out to be false, and iShares' application for a bitcoin-ETF remains pending.

 

After the rumor was refuted and the price of bitcoin and other cryptocurrencies fluctuated, there was a forced liquidation of margin positions. Within an hour, traders on crypto exchanges lost $103 million, of which $64 million was in BTC and $17.9 million in Ethereum.

 

Bitcoin rose in price last week after news of the SEC's refusal to appeal a ruling on Grayscale's lawsuit against regulators. In June 2022, Grayscale sued the SEC over its rejection of an application to convert Grayscale Bitcoin Trust (GBTC) into an ETF. It's possible the SEC will reject Grayscale's request again, but recent court decisions hint at a possible change in the SEC's stance on Grayscale.

 

Bitcoin's price is under constant pressure due to uncertainty in the US crypto industry legislation. This makes investors cautious about strengthening their positions. The low volume and liquidity of the market lead to the fact that BTCUSD is unable to consolidate beyond the $30,000 level and reach new highs.

 

Today, reports on retail sales and industrial production in the US are going to be published. And on Thursday, US Federal Reserve (Fed) Chairman Jerome Powell is expected to give a speech. Market participants believe that the upcoming speech of the Fed chief may bring more clarity on the central bank's stance on interest rates. This will increase volatility in the markets, including the cryptocurrency one.

 

The BTCUSD price is in a broad correction on the D1 timeframe.

 

In terms of wave analysis, the price is forming the second descending wave on the H2 timeframe. The strong news background of the middle of the week may create conditions for a change in the trend and the transition of the second wave into the third ascending wave.

 

Signal:

The short-term outlook for the BTCUSD pair is to buy.

The target is at the level of 31,000.

Part of the profit should be fixed near the level of 29,750.

A Stop-loss should be placed near the level of 26,400.

 

The bullish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.

This content is for informational purposes only and is not intended to be investing advice.

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