The hopes of approval for a spot Bitcoin (BTC) exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC) have had a positive impact on Bitcoin’s price, which surged by 27% in October. This increased optimism has attracted aggressive buying from crypto investors.
According to Bloomberg senior ETF analyst Eric Balchunas, the ProShares Bitcoin Strategy ETF (BITO), the first futures-based ETF to receive regulatory approval in the US this year, experienced its second largest trading week ever, reaching $1.7 billion in volume. Similarly, the Grayscale Bitcoin Trust (GBTC) recorded a volume of $800 million. The significant increase in trading volume for these existing instruments indicates that spot Bitcoin ETFs can expect to see substantial volumes when they are eventually approved.
When the leader in a market, such as Bitcoin, performs well, it often has a positive impact on the entire sector. This is evident in the strong performance of altcoins, which have experienced significant increases from their multi-year lows. However, after an initial rally, some altcoins may struggle to maintain their upward momentum, while others will lead the market higher. Therefore, it is advisable to stick with the leaders as they are likely to outperform during the next crypto bull phase.
Taking a look at the charts, Bitcoin pulled back from $35,280 on October 24, indicating that higher levels are attracting selling pressure from traders. However, the long tail on the candlestick on October 27 shows solid buying at lower levels. The rising moving averages suggest an advantage for buyers, but the overbought levels on the relative strength index (RSI) indicate that the BTC/USDT pair may spend more time in consolidation. Key levels to watch on the downside are $32,400 and $31,000, while a break above $35,280 could signal a surge to the next target objective at $40,000.
Moving on to Ether (ETH), it climbed above the $1,746 resistance level on October 23 and reached $1,865 on October 26. However, the price pulled back toward the breakout level, indicating that it may now act as a new support level. The rising 20-day exponential moving average (EMA) and the overbought RSI suggest that bulls are in control. If they manage to push the price above $1,865, the ETH/USDT pair could rally to $2,000. On the downside, a break below $1,746 could open the doors for a fall to the 20-day EMA.
APTOS (APT) has experienced a strong rally in recent days, indicating that bulls are attempting a comeback. The pair encountered profit-booking near $7, but the bulls did not give up much ground, suggesting that every minor dip is being purchased. Bulls will aim to overcome the obstacle at $7 and if successful, could start a march toward $8. On the other hand, if the bears remain active at higher levels, the pair may consolidate between $7 and $6.20, with a break below signaling a deeper correction.
Quant (QNT) broke above the breakdown level of $95 on October 23, suggesting a rejection of lower levels by the market. The price subsequently rose above the downtrend line, indicating a potential trend change. While short-term bulls have been booking profits, a bounce back from the downtrend line could suggest a level of support. Clearance of the hurdle at $110 would signal a resumption of the rally, while a drop below the downtrend line could indicate a bear trap.
Finally, THORChain (RUNE) broke and closed above the resistance level of $2 on October 23, completing a bullish inverse head and shoulders pattern. Both moving averages are sloping up, indicating a bullish trend, but a minor correction or consolidation may be on the horizon. Bulls holding their positions after a minor dip would suggest a potential rally to $3, while a break and sustain below $2 would give bears control.
It is important to note that this article is not providing investment advice or recommendations. Investors and traders should conduct their own research before making any decisions.
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