Greetings! In this article, I will go over my technical analysis I did today and explain what indicators were notable and future potential scenarios of the BTC price action.
Can the BTC ETF Approval drive Bitcoin to 30k?
Today, Bitcoin, along with many cryptocurrencies had a large rally towards 29k. This was due to the fact that the SEC approved one BTC ETF. In this article, I will go over the impact of this rally along with potential future outcomes of the Bitcoin price action.
4-hour time frame:
In the 4-hour time frame, the RSI is back into overbought territories. The MACD, additionally is also overbought, with the definite chance for it to form a bearish cross within the next day or so. However, despite both the RSI and MACD being in unhealthy levels of overbought territories, the retracement that is to come will most likely be minor (It will most likely retrace to 28k-27k support regions within the next day or two to cool of the overbought indicators on both the RSI and MACD).
24-hour time frame:
In the 24-hour time frame, the RSI is back into near-overbought territories along with the MACD forming a bullish cross. While the RSI is somewhat bearish, the bullish cross on the MACD that just formed indicates that Bitcoin will most likely continue a strong uptrend. Furthermore, the rally caused Bitcoin to reclaim the 200, 20, and 50 EMA support regions. Additionally, the 20 EMA is now likely to stay above the 50 EMA to form a bullish channel. Overall, the daily time frame looks very bullish and is indicating that a strong uptrend is to come.
Weekly time frame:
In the weekly time frame, the RSI is still within neutral territories, however, still under RSI resistance. The MACD is very close to forming a bullish cross. These two indicators indicate that Bitcoin is likely to continue a bullish trend and break through the RSI resistance (As I said many times earlier, the main issue holding Bitcoin back was the RSI resistance level, however, with a strong bullish catalyst, such as the ETF approval, it could break through the RSI resistance). Furthermore, Bitcoin managed to strongly reclaim all EMA support regions along with the fact that the 20 EMA is now safely curving above the 50 EMA, meaning that a larger rally is most likely going to play out.
Conclusion:
In conclusion, the effects of a catalyst as large as the BTC ETF approval is likely to break into an uptrend towards 30k. This is due to the fact that the weekly and daily timeframe's MACD is finally curving into a bullish cross as well as the fact that Bitcoin now has enough bullish momentum to make a strong break above RSI resistance.
