As of October 19, the ProShares Bitcoin Strategy exchange-traded fund (ETF) will begin trading on the NYSE under the ticker BITO.
The ETF’s volumes will likely be actively watched by market participants to get a sense of how much interest there is from institutional investors. Short-term traders may be tempted to book profits if the response is muted for a few days, but if demand stays high, the bullish momentum may ramp up even further.
With institutional money pouring into crypto, institutional managers’ total assets have risen to a new record high of $72.3 billion, as shown by the latest CoinShares report for the week ending October 17. Bitcoin-related products brought in $70 million of the $80 million total over the week.
Would a new Bitcoin ETF improve sentiment and push the price to a new record high, or will traders take profits now that the ETF is available? Is it time for Bitcoin’s value to drop and move into alternative cryptocurrencies? Let’s study the top cryptocurrencies to find out.
Strong purchasing on dips may be seen in the Bitcoin candlestick’s extended tail, which was drawn on October 17th. On the 18th of October, bulls made a try but failed to push the price beyond the high of $62,933 set on October 15. This indicates that bears are putting up a strong fight in the $62,933 to $64,854 price range.
The BTC/USDT pair may fall to the 20-week exponential moving average (EMA) ($55,118) if sellers lower the price below $58,963. Rebounding strongly off of this level will signal that traders are buying on dips and sentiment is still favorable.
After that, the bulls will try to clear the above hurdle one last time. After that, a new uptrend may begin with a target of $70,000 and eventually $75,000 if they are successful.
After a break of support at the 20-day EMA, the pair may drop to the $52,920 area that marked its breakout. If this support breaks, the pair might fall below the 50-day SMA ($49,270), which is an important level to watch.
On October 17, the bulls successfully defended the neckline of the inverted head and shoulders (H&S) pattern, but the comeback was short-lived. This indicates that as the price rises, so does the demand for the product. On October 18, the bears dragged ETH back to the neckline of the setup.
If the neckline is broken, the price could fall to the 20-day exponential moving average ($3,563). There is a clear advantage for buyers due to increasing moving averages and the RSI being in the green.
It’s possible that traders will continue to accumulate on dips if the stock bounces strongly off the 20-day EMA. They will then attempt to clear the $4,027.88 overhead hurdle.
This would allow the ETH/USDT pair to return to its all-time high of $4,372.72 if they are successful. A downside correction below $3,200 is possible if bears manage to push the price of gold below its moving average.
Cardano (ADA) is currently trading in a symmetrical triangle formation, indicating both bulls and bears are unsure of the direction the price will move next.
The 20-day exponential moving average ($2.20) is progressively sloping down, and the RSI is nearing 43, indicating a little advantage for bears in the short term. The ADA/USDT pair may go as low as $1.87 if sellers push the currency below the triangle’s support line.
The bulls may be tempted to buy heavily at this point. Bulls have absorbed supply and produced a powerful rebound if the triangle breakout and close above the resistance line.
Once this rise reaches $2.47, it may serve as a roadblock, but if the bulls are able to overcome it, the move may continue to $2.80.
Polkadot (DOT) managed to break over the $38.77 overhead barrier on October 13th, but the bulls were unable to take advantage of this strength and push the price higher. This shows that bears are steadfast in their approach and are actively selling on any increase in price.
Drop and closing below the 38.77 level and the 20-day EMA ($36.64) will signal weakness. DOT/USDT may then fall to the 50-day simple moving average ($33.05).
RSI is in the buy zone and the 20-day exponential moving average is going upwards.
It will be a sign that bulls are back in the game if the price rises from the present level of $38.77 and breaks above $44.79. A retest of the all-time high of $49.78 is possible after that.