The month of October has not even reached the middle and the leading cryptocurrency by market capitalization, Bitcoin, is already close to the local all-time highs set at the beginning of the year. Bitcoin’s dramatic bull run came to an abrupt halt in April at around $ 65,000, dropping again to $ 28,000 before beginning its recovery.
Now, the price of Bitcoin has returned to just under 60,000 and a possible approval of a Bitcoin ETF is potentially around the corner. Speculation alone has caused FOMO to return to BTC and prices to skyrocket.
In a new research report from PrimeXBT, analysts warn that volatility is coming, up or down, depending on the outcome of this critical decision of a possible Bitcoin ETF approval. To make things even more interesting, the US SEC posted a tweet referring to a ‘fund’ based on Bitcoin Futures, which could hint at possible approval in just a few days.
Bitcoin returns to 60K: what factors are driving it?
In recent months, the price action of Bitcoin had a high correction in a short time, which reduced the value of the cryptocurrency by more than 50% in just a couple of weeks. The shocking move was the result of a host of negative news coming out of China, including the FUD, bans, and a crackdown on BTC mining that crushed the cryptocurrency’s hash rate.
Various technical indicators for Bitcoin showed that although the correction was very strong, the bull market was not over. On-chain metrics show that the supply of BTC on exchanges is now at the lowest levels, along with the supply of illiquid coins, implying that the coins currently held are not on the exchanges; instead, they are in the hands of diamonds that will not sell until they reach $ 100,000 or more.
Without supply, high demand, and both fundamentals and technicals bullish, Bitcoin is already back at the final resistance at $ 60,000. Bitcoin never closed a weekly candle above that level and only spent less than ten days in total above it before correcting it. This is where a decision will be made that defines the trend.
Reports Say Bitcoin ETF Approval Is Possible
A new research report from PrimeXBT highlights the potential impact of approving or rejecting a Bitcoin ETF before the end of October. VanEck, ProShares, Invesco, Valkyrie, and Galaxy Digital have proposals for approval before the clock strikes midnight on November 1. Previous negatives have resulted in sharp declines for Bitcoin, which could result in a double top formation and narrative.
However, an approval could cause serious FOMO in Bitcoin, like never before. Either way, PrimeXBT cautions that traders and investors should prepare for potential volatility no matter which direction it will take.
All eyes are on this potential tipping point, but given the technical and bullish fundamentals, the only thing standing in the way of an approval and new all-time highs would be a denial from regulators. Interestingly, however, just before these decisions were made, an official SEC Twitter account shared a newsletter on Bitcoin futures-based funds, which could be a reference to a Bitcoin ETF, also called a fund. publicly traded.
How to trade Bitcoin volatility with PrimeXBT
In terms of what traders can do, it is time to prepare for almost any scenario. Establishing loss limits is essential. The price of Bitcoin is in resistance, which means that the typical move is to go short or at least have a hedge position. However, when Bitcoin is so bullish, the last thing it wants to do is sell a trending cryptocurrency.
PrimeXBT is a one stop shop for everything related to trading. Traders can carefully plan their positions using integrated technical analysis software, available from the same account and platform with which they can access copy trading, performance accounts or margin trading in forex, commodities, stock indices and cryptocurrencies.
Taking a long position was best in the low 30K or 40K zone, so be careful to rush into new positions. If the FOMO is really back at this point in a bull market, there won’t be many drops left to buy. If Bitcoin sets new highs from here, a parabolic curve could be confirmed and, according to the build structure of the base, could make the price per BTC double in the shortest time possible.