Last night in the Asian markets, Bitcoin skyrocketed to form a massive green candle with a 2.52% jump in BTC price. As for why Bitcoin is rising – the US lawmakers have asked the SEC to approve Bitcoin spot ETFs already, saying there’s no good reason to keep denying them.
With the overnight sharp move in Bitcoin, even the altcoins market, fueled by the positive sentiment, took a reversal spin.
With the sharp recovery, Bitcoin undermines the short-term correction trendline and gives a bullish breakout. This ends the recent streak of lower high formations in BTC price and challenges the confluence of the 50 and 200-day EMAs.
Furthermore, the crypto price action shows a potential inverted head and shoulder pattern in the daily chart. With shoulders at $26K and head at $24,939, the neckline comes around the $27K barrier.
Currently, the BTC price trades at $26,975 with an intraday fall of 0.19%, reflecting the higher price rejection above the EMAs. This increases the likelihood of a trendline retest before starting the uptrend.
Moreover, the chances of Bitcoin spot ETF being approved by the SEC in October are extremely high. Therefore, a sentiment-driven rally or a hopium rally in BTC price is possible days before the actual decision.
Technical indicators:
Relative Strength Index: The daily RSI line continues to move upwards and approaches the overbought territory.
MACD: MACD and signal lines maintain a positive trend with rising bullish histograms as they avoid a bearish crossover.
Therefore, the momentum indicators display a bullish point of view.
With the overall market sentiments improving and the rising trend momentum, BTC price may soon exit the bearish influence. The EMA breakout seems imminent, propelling Bitcoin higher to the $30K mark. On an even brighter side, if the SEC approves the Bitcoin ETF, the price may skyrocket to the $35K mark.
On the bottom side, a breakdown below $26,274 can lead to a nosedive to $25,600 or $24,900 in a worst-case situation.
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