Market update: bitcoin technical outlook – chart suggests higher prices are likely

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A bullish pennant breakout is currently being tested with bitcoin; and a golden cross – 50-/200-day SMA crossover has been formed as a SEC decision on ETF bitcoin products awaits

 

Source: Bloomberg

 

Forex Shares Bitcoin Market sentiment ETF Technical analysis

Nick Cawley | Analyst, DailyFX, London | Publication date: Tuesday 31 October 2023 05:09

We have been optimistic on bitcoin over the past few weeks due to a cluster of positive fundamental drivers. The main driver is the growing ‘matter of when not if’ decision on spot bitcoin ETF product with a raft of heavyweight names, including BlackRock and Fidelity, waiting for the US Securities and Exchange Commission (SEC) to give them the green light.

There are currently nine spot bitcoin ETF applications sitting on the SEC’s desk, and the regulator may have to grant all of them a green light at the same time, to prevent any one firm from getting a first mover’s advantage.

Bitcoin technical analysis

The technical outlook for bitcoin looks positive with two bullish indicators seen on the charts. The recent surge higher has seen a bullish pennant pattern appear, with BTC currently trying to break higher. If a traditional pattern has been made, the October 23rd, $5k candle would be added to the breakout, giving a target price of around $40k.

The chart also shows a 50-/200-day bullish crossover (Golden Cross), another potential driver of higher prices. The crossover is seen by some technical analysts as a trigger for higher prices due to the potential for a bullish trend continuation. As long as bitcoin stays above $32,832 in the short term, the move higher should continue. A confirmed sell-off would eye a final target at $30k.

Bitcoin (BTC/USD) daily chart

 

Source: TradingView

 

 

 

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