Crypto traders are abuzz with speculation over Bitcoin’s price breakout, triggered by last week’s fake news of spot ETF approvals, which rejuvenated the bulls. However, Bitcoin’s price action has yielded mixed reactions, resulting in high liquidations and increased volatility.
While the Uptober narrative has contributed to Bitcoin’s recent rebound above $30k, concerns linger about a potential head and shoulders (H&S) formation in the higher time frame, casting a shadow of bearish sentiments.
CME Gap and Death Cross: Adding to the uncertainty, Bitcoin opened Monday with a conspicuous CME gap between $29.7k and $29.8k, which may be filled in the coming days. Furthermore, Bitcoin’s daily and weekly death crosses between the 50 and 200 Moving Averages (MA) have not been invalidated following the recent rally.
A Glimmer of Hope:
On the brighter side, Bitcoin’s price has traded above $30k three times year-to-date. Historically, it has tended to drop towards the support level of around $25k after breaching $30k. However, this time, the breakout above $30k has found support from a noticeable surge in altcoin demand.
On-chain analytics platform Santiment has reported that several altcoins, including Chainlink (LINK), Polygon (MATIC), Aptos (APT), and Aave (AAVE), have experienced their most significant decoupling of 2023. Most notably, many altcoins have seen their average daily trading volume doubling.
With the Uptober narrative in mind, there is growing optimism that Bitcoin’s price could reach $40k in the coming weeks. This bullish scenario could be expedited by approving a spot Bitcoin ETF in the United States.
The cryptocurrency market is experiencing a whirlwind of excitement and caution as traders closely monitor Bitcoin’s price movements and the evolving narrative in this dynamic space.
