Bullish view
- Buy the BTC/USD pair and set a take-profit at 36,500.
- Add a stop-loss at 32,000.
- Timeline: 1-2 days.
Bearish view
- Set a sell-stop at 33,000 and a take-profit at 32,000.
- Add a stop-loss at 35,500.
Bitcoin has been one of the best-performing assets this week as demand for the coin rises. The BTC/USD pair surged to a high of 35,133 on Tuesday, the highest level since May 2022. It has surged by over 117% from the lowest level this year. In contrast, other assets like gold and stocks have risen by much less.
Bitcoin surge continues
Bitcoin has rallied in the past few days as investors remained hopeful that the Securities and Exchange Commission (SEC) will approve ETFs by leading companies like Blackrock, Invesco, Ark Invest, and Franklin Templeton.
Analysts believe that the SEC will approve all these ETFs together. As a result, these companies will need to buy as many Bitcoins as possible to fulfill demand from institutional investors.
There is speculation that some of these companies have started buying Bitcoin already. For example, Blackrock’s ETF proposal said that the company would start buying the coins by the end of October.
Also, the approval of the ETF will validate Bitcoin as an established asset class along others like gold and silver.
Bitcoin’s performance has stunned many crypto bears. It comes a year after Terra’s collapse, which led to the demise of companies like Voyager Digital, Celsius, and Three Arrows Capital.
In November, FTX, then the second-biggest cryptocurrency collapsed, leading to billions of dollars in losses. This collapse pushed more people to exit the crypto industry as concern about safety continued.
Bitcoin has also risen after a series of legal wins. Ripple Labs won a major lawsuit against the SEC in which the regulator called XRP a financial security. Recently, Grayscale won a lawsuit that compelled the SEC to review its plan to convert GBTC Trust into an ETF.
BTC/USD technical analysis
Bitcoin has been in a strong bullish trend in the past few days. This surge saw it rally from last month’s low of $24,800 to over $35,000. On the daily chart, Bitcoin has risen above the important resistance at $31,906, the previous YTD high.
The BTC/USD pair has remained above the 50-day and 100-day Arnaud Legoux Moving Averages (ALMA). It has also moved above the Ichimoku cloud indicator. Therefore, there is a possibility that the uptrend will continue as buyers target the next resistance point at 37,000.
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