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Bitcoin (BTC) came close to breaking above $35,000 on Wednesday this week but retreated to confirm support at $34,000. The largest cryptocurrency rally broke out last week following rumors of the United States Securities and Exchange Commission (SEC) greenlighting a BTC spot exchange-traded fund (ETF) proposal by BlackRock.
Since then, crypto markets have been in the green with altcoins joining in the bullish party. Ethereum, the largest smart contracts token and the second-largest crypto is up 16.7% in seven days to $1,811. Solana (SOL), XRP, Dogecoin, Cardano, Chainlink, and Polygon to mention a few, are some of the best-performing altcoins.
Meanwhile, Bitcoin price is up 20% over the last seven days, 28% in 14 days, and 30% in 30 days to trade at $34,313, according to market data by CoinGecko.
JP Morgan Foresees Multiple Lawsuits If The SEC Rejects Spot ETFs Proposals
Sentiment continues to build for another breakout bolstered by optimism for the approval of the first BTC spot exchange-traded fund (ETF) in the US. Analysts across the board appear to agree that greenlighting the ETF could pump Bitcoin price to $45,000 before the end of 2023.
While most signs point toward the approval of the spot ETF, the decision lies with the SEC.
Meanwhile, analysts at JP Morgan led by Nikolaos Panigirtzoglou said in a report on Wednesday that the SEC could face multiple lawsuits if it declines to approve the BTC ETF proposals.
“Any rejection could trigger lawsuits against SEC creating more legal troubles for the agency,” the analysts wrote in the the report.
In a statement to the Block, Panigirtzoglou said that although the decision to reject is highly unlikely, “it is possible.”
He believes that the SEC may not want to be entangled in another legal battle, let alone multiple lawsuits, especially after the agency lost a related case against Grayscale Investments, which had sought to convert its Bitcoin Trust (GBTC) product to a spot ETF.
The decision by the SEC not to appeal the ruling, which favored Grayscale, has encouraged many to believe the time for spot Bitcoin ETFs in the US has arrived.
JP Morgan in another report last week, said that it expects multiple BTC ETF approvals in the coming few months. According to the investment bank, fund managers are making technical preparations and amending filings to clear issues regarding market manipulation and commingling of customer funds ahead of the approvals.
Bitcoin Price Prediction: BTC Rally Takes A Breather At $35,000
Bitcoin price retested resistance at $35,000 for the second time this week on Wednesday. While a breakout failed, dips have become noticeably minor suggesting that buyers have the upper hand.
Analysts are also pushing the narrative that these are the early stages of a bull run while advising investors to be patient and take advantage of dips whenever they occur. Altcoin Sherpa, an analyst and trader with 197k followers on Twitter (now X) said “You also need to be cognizant about what the start of a really strong rally looks like.” He was referring to the big swings, with no pullbacks, witnessed across many digital assets including LUNA and AVAX.
Although I always try to preach patience, you also need to be cognizant about what the start of a really strong rally looks like. I'm not saying this is anything close to 2021 but it's still good to note what this spark looks like
Check $LUNA $AVAX: no pullbacks, just big moves pic.twitter.com/ay5he7KQac
— Altcoin Sherpa (@AltcoinSherpa) October 26, 2023
Meanwhile, Bitcoin price is trading above all the bull market indicators on the weekly chart, including the 21-week Exponential Moving Average (EMA) (red), the 100-week EMA (blue), and the 200-week EMA (purple).
The next breakout above $35,000 could push Bitcoin to the subsequent hurdle of $38,000. Movement above this level would serve as confirmation for the bull market, where FOMO could take over and trigger larger price rallies toward the all-time high near $70,000.
However, traders should be aware of the almost overbought Relative Strength Index (RSI) which could imply that a correction is looming. Therefore, a pullback into the neutral area could signal them to lock in the gains and make new entries at a lower price point.
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