On the first day of the new week, Bitcoin (BTC), the world’s largest cryptocurrency, made a significant upward move in the morning hours. Currently, Bitcoin price is trading at $27,897 with an increase of 3.8 percent. This move led to renewed optimism in the market. Here are the details…
Bitcoin price causes optimism
Bitcoin’s rise above the $27,000 level has created the possibility that Bitcoin will rise further and possibly reach the $27,800 level, as seen on the technical charts. Bitcoin also achieved this rise. It rose to a maximum of $27,956 on a daily basis. However, this upward momentum has also brought concerns about a potential price correction, which has some fear for long-term Bitcoin holders. Currently, Bitcoin price is trading above $27,000. It maintains a position above the 100-hour Simple Moving Average (SMA). However, it is facing a significant resistance near $27,300.
The next significant resistance can be found near $27,500, or the 61.8% Fibonacci retracement level calculated from the downside move between the $28,285 high and $26,550 low. A decisive breakthrough for Bitcoin price above these resistance levels at $27,500 and $27,650 could pave the way for a more significant uptrend. However, if Bitcoin fails to stage a significant recovery above the $27,500 resistance, there are chances of a decline. An initial support on the downside can be detected near the $27,000 level and the trend line. The next important support level is near $26,900 along with the 100 hourly SMA.
What were the developments that affected the rise?
Bitcoin price and many products in parallel with it are affected by various developments. For example, Grayscale and the U.S. Securities and Exchange Commission (SEC) are preparing to begin negotiations this week regarding the conversion of the Grayscale Bitcoin Trust (GBTC) product into a spot Bitcoin Exchange Traded Fund (ETF). This development follows the SEC’s decision not to appeal a court ruling in favor of Grayscale, increasing the likelihood of spot Bitcoin ETF approval in the US to 90% by January 2024.
Notably, the discount of GBTC shares to the spot Bitcoin price has fallen below 16%, a significant decline from a high of 30% at the beginning of this year. Latest data from YCharts shows that GBTC’s discount to Bitcoin’s Net Asset Value (NAV) was 15.87% as of October 13. This decline in GBTC’s discount began when financial giants such as BlackRock and other institutions filed for spot Bitcoin ETFs in mid-June. The discount showed a steady decline, falling from 44% on June 15 to 26.7% on July 5, and this narrowing trend has continued since then.
Liquidation data attracted attention
As of October 16, CoinGlass data shows significant liquidation activity in the cryptocurrency market in the last hour. A total of $34.72 million was liquidated. Short sell orders liquidated approximately $34 million and long positions liquidated approximately $700,000. With the price of Bitcoin, BTC liquidations amounted to $17.7 million and Ethereum liquidations amounted to $8.14 million. These data points highlight the volatility and fast-paced nature of cryptocurrency trading, where gains and losses can happen quickly.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.