Bitcoin price hovers near key $31.7K pivot point – can BTC bulls turn up the volume?
Bitcoin (BTC) price pushed above the $31,000 mark on October 23, hitting a 4-month high that saw BTC price trade at $31,800.
The new upside push comes as analysts and investors express excitement over new developments, which could indicate that the BTC ETF position is about to begin.
So two things caught my eye from the new iShares (Blackrock) S-1 update: They got a CUSIP for startups – they might want to seed with cash this month (which is earlier than I'd like. I thought, but maybe not) pic.twitter.com /lMDaKxiIbB
— Scott Johnson (@SGJohnsson) October 23, 2023
Citing Johnson's post, Bloomberg senior ETF analyst Eric Balchunas warned followers not to get too excited, and explained that the updated iShares (Blackrock) S-1 filing indicated that BlackRock was preparing to seed their ETF and that “this disclosure marks another step.” “Initializing”
Balchunas explains the process:
“Background: ETF seeding is the initial financing by a bank or broker-dealer to purchase a few units of creation (in this case, bitcoin) for shares of an ETF that trade on a day's open market. “
RELATED: Bitcoin ETF To Spark Strong Interest From Institutions, Says EE
Bitcoin spot volumes and institutional investor activity create waves
From market analysis, Bitcoin's rapid movement has moved in the $30,000 zone with spot volume.
Data from CoinMetrics shows a weekly increase in crypto asset flows by institutional investors into digital asset investment products.
CoinShares analyst David Butterfill said:
“Digital asset investment products brought in a total of US$66m for the 4th consecutive week, bringing the last 4 weeks of inflows to US$179m. Following the recent price increase, total AuM (AuM) is up 15% from the lows of early September, now A total of nearly US$33bn, the highest point since mid-August.
CME futures have doubled, a reflection that space and futures traders have a new sense of bullishness about Bitcoin's recent price action.
An increase in CME volumes and spot volume, as opposed to an increase in open interest in Binance Futures, suggests that this week's action may be more than just a regular super bullish retail trader trying to open margin longs and shorts on the recent price action.
On the technical analysis side, Bitcoin's 20-day moving average pushed slightly above the 200-day moving average, which is a positive move, but many traders expect an all-important golden cross at the 50-day moving average. It moves above the 200-day moving average.
A series of daily closes above $31,700 as daily or weekly higher candlesticks above this level will keep the price above a key point and enter the invisible territory from May 2022, given the longer time frame of Bitcoin's market structure.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
