You may have taken your eyes off the ball when Bitcoin blasted its way to US$30k. In other words, you were busy with other matters. I was one of such people. On the evening of Monday the 16th, I got my first chance that day to look at the charts. To my surprise, I see the BTC price at US30k. I did wonder what brought this about. As I looked into it, reports surfaced that the approval of a BTC ETF (Exchange Traded Fund) is imminent. These reports were false and rumours.
In the world of crypto, a day is a very long time. These rumours now have some validity. The SEC's (US Securities and Exchange Commission) recent losses in court have contributed to the excitement that there will be a BTC ETF before the end of the year. Institutional players, including BlackRock and Cathie Wood's ARK, are clamouring for this. It seems the tide has turned.
A look at the charts tells us a lot. First, a new series of higher highs and higher lows indicates increased activity in the market. Second, the price broke through a confluence of institutional selling at price points between $29k and $30.2k. Many analysts believe $35k is possible. Some have gone as far as $40k.
Finally, the series of higher highs and higher lows emanate from areas of institutional buying. The Laguerre RSI at 100 indicates that BTC is overbought. While the Choppiness Index has barely enough energy for a price push. These indicators tell us that prices may fall. Nevertheless, with the rumours swirling around, investors may be too enthusiastic to have a correction.
So, do rumours conquer all? Sometimes, I guess. And as for the optimistic bets of $40k BTC, your guess is as good as mine.
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