Approval Hopes for Bitcoin ETF Boosts Market Sentiment and Altcoin Rally
In October, hopes of approval for a spot Bitcoin (BTC) exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC) led to a 27% increase in Bitcoin’s price. This positive sentiment attracted aggressive buying by crypto investors, resulting in increased trading volumes for existing instruments such as the ProShares Bitcoin Strategy ETF (BITO) and Grayscale Bitcoin Trust (GBTC).
Eric Balchunas, a senior ETF analyst at Bloomberg, highlighted in a post on X (formerly Twitter) that BITO saw its second biggest trading week ever at $1.7 billion, while GBTC recorded a volume of $800 million. This surge in volume indicates that spot Bitcoin ETFs can expect to see significant trading activity once they are approved.
The strong performance of Bitcoin also had a positive impact on altcoins, which experienced a sharp rise from their multi-year lows. However, after the initial rally, some altcoins may struggle to sustain their upward movement, while others will continue to lead the market higher. It is advisable to stick with the leaders as they are more likely to outperform during the next crypto bull phase.
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Bitcoin Price Analysis
Bitcoin pulled back from $35,280 on October 24, indicating that higher levels are attracting selling pressure from traders. However, the long tail on the candlestick on October 27 shows solid buying at lower levels. The rising moving averages indicate an advantage for buyers, but the overbought levels on the relative strength index (RSI) suggest that Bitcoin may enter a consolidation phase.
The key levels to watch on the downside are $32,400 and then $31,000. Sustained selling pressure below these levels would indicate a shift in control to the bears. On the upside, a break above $35,280 would signal that the bulls are back in control, with the next target objective at $40,000.
Ether Price Analysis
Ether (ETH) broke above the $1,746 resistance level on October 23 and reached $1,865 on October 26, attracting selling pressure from short-term traders. However, the successful defense of the retest to $1,746 indicates that this level may now act as support. The rising 20-day Exponential Moving Average (EMA) and the overbought RSI suggest that the bulls are in command. If the price breaks above $1,865, the ETH/USDT pair could rise to $2,000.
To prevent an upside move, bears will need to sustain the price below $1,746. On the 4-hour chart, the 20-EMA is flattening out and the RSI is near the midpoint, suggesting a range-bound action in the near term between $1,746 and $1,865.
Aptos (APT) Price Analysis
APT rallied sharply in recent days, indicating an attempt by the bulls to make a comeback. The resistance near $7 led to profit-taking, but the bulls managed to hold their ground. If they can overcome this resistance, the pair may start its journey towards $8. However, a drop below $7 would indicate bearish activity, potentially leading to a deeper correction.
On the 4-hour chart, the negative divergence on the RSI suggests that bullish momentum may be slowing down. If the price breaks below the 20-EMA, a deeper correction to the 50-SMA may be expected. On the upside, a breakthrough above $7.02 would indicate the start of the next leg of the recovery.
Quant (QNT) Price Analysis
Quant broke above the breakdown level of $95 on October 23, signaling a rejection of lower levels by the market. The price also moved above the downtrend line on October 25, indicating a potential trend change. However, short-term bulls seem to be booking profits, which may result in a minor correction or consolidation. A drop below the downtrend line would suggest that the rise above it was a bull trap, while a bounce from the line would indicate support from the bulls.
On the 4-hour chart, the price is facing resistance near $108, with the bears pulling the price below the 20-EMA. If the price slips below $103, the pair may drop to $100. However, sustaining the price above the 20-EMA would suggest continued buying interest, with a potential rally to $110 and higher.
THORChain (RUNE) Price Analysis
THORChain broke and closed above the overhead resistance of $2 on October 23, completing a bullish inverse head and shoulders pattern. Both moving averages are sloping up, indicating that the bulls are in command. However, a minor correction or consolidation may be expected in the short term.
If the price remains relatively stable from the current level, it suggests that the bulls are holding their positions and increases the likelihood of a rally to $3 and the pattern target of $3.23. Bears will need to pull the price below $2 to prevent this upward trend.
On the 4-hour chart, the price has found support at the 20-EMA, indicating bullish momentum. However, the negative divergence on the RSI suggests that momentum may be weakening. If the price falls below the 20-EMA, it may tempt short-term traders to book profits, potentially leading to a drop to the 50-SMA. On the other hand, a strong rebound from the 20-EMA would signal positive sentiment and a potential breakout above $2.57.
Conclusion
The hopes of approval for a spot Bitcoin ETF by the SEC have boosted market sentiment and led to increased volumes for existing instruments such as BITO and GBTC. Bitcoin’s strong performance has also positively influenced the altcoin market, with some coins likely to outperform during the next bull phase.
Bitcoin, Ether, Aptos, Quant, and THORChain are among the top cryptocurrencies that traders should watch. Bitcoin’s consolidation phase may continue, while Ether’s upward trend is supported by the rising moving averages. Aptos, Quant, and THORChain are experiencing varying degrees of bullish momentum, but short-term corrections may be expected.
As always, readers should conduct their own research and exercise caution when making investment decisions, as every investment and trading move involves risk.
