Sat, December 21

BTC Price Nears $28K, Riding High on ETF Expectations. Will it Sustain?

BTC Price Nears $28K, Riding High on ETF Expectations. Will it Sustain? Bitcoin News
  • Bitcoin (BTC) surges 4.5%, reaching $27,963, fueled by growing optimism about the potential approval of a Bitcoin ETF.
  • Bitcoin’s daily trading volume spikes by 139% to $11.6B, indicating increased market activity.

The oldest gem, Bitcoin (BTC), has experienced a significant price jump of 4.5%, rising from $27,001 to $27,963. The surge has been fueled by growing optimism surrounding the potential approval of a Bitcoin exchange-traded fund (ETF) in the near future, igniting bullish hopes within the crypto community.

Over the weekend, BTC’s price regained its bullish momentum, coinciding with the imminent decision on the Bitcoin spot ETF expected in the coming month. This resurgence in sentiment among investors has led to significant growth over the past 48 hours.

Bitcoin’s (BTC) 24-Hour Price Boost

The surge in BTC price has resulted in the formation of a couple of bullish engulfing candles, surpassing key technical indicators like the Exponential Moving Averages (EMA) and Relative Strength Index (RSI). 

At the time of writing, Bitcoin is trading at $27,958, marking a 3.57% increase in the last 24 hours and a notable 5% gain over the past month. Additionally, the daily trading volume of Bitcoin has surged by approximately 139% to reach 11.6 billion.

This sudden reversal in BTC’s price has created a significant neckline close to the $28,000 mark. If the cryptocurrency manages to assert its dominance above this critical level, the uptrend will likely have a higher probability of reaching $29,000 and possibly extending to $30,500.

In a technical analysis, the RSI line mirrors the price reversal. Showing an upward movement surpassing the halfway point and the 14-day SMA while also approaching the overbought zone. This uptick in the daily RSI line notably strengthens the prevailing bullish sentiment.

Bitcoin (BTC) Price Chart (Source: TradingView)

Crucially, the alignment of the 50 and 200-day EMA remains bullish, and this price reversal has caused an uptick in the 50-day EMA. As long as the bullish momentum persists, these EMAs are expected to provide dynamic support for Bitcoin’s price. The likelihood of a bearish reversal is currently minimal.

However, in the event that sellers maintain their control at the $28,000 mark, and if the U.S. Securities and Exchange Commission (SEC) delays the confirmation of a Bitcoin spot ETF, the market could enter a sideways trend. In such a scenario, Bitcoin’s price trend may revisit the $27,000 mark and possibly even dip to $26,500. The crypto market remains on the edge as the decision regarding the Bitcoin spot ETF eagerly awaits.

A journalism graduate who is passionate about writing loves to dance and travel currently starts exploring blockchain technology.