The Bitcoin market has been on a roller coaster ride recently, with prices almost rallying by 10% on the back of fake news of an ETF approval. This surge was followed by a fall back to $28,555. The market is now awaiting the second deadline for Fidelity, VanEck and WisdomTree applications on October 17, which is expected to also be delayed.
Despite nearly $86 million worth of shorts liquidations on Monday, BTC investors managed to make money, with the Net Unrealized Profit/Loss (NUPL) indicator touching a two-month high. This indicates that the broader market sentiment remains unchanged and BTC holders are still standing strong.
The ongoing ETF saga involving the Securities and Exchange Commission (SEC) is set to continue, with the SEC expected to announce its decision regarding the spot ETF applications of Fidelity, VanEck and WisdomTree today. However, it is speculated that the approval is likely going to be delayed until January 2024.
Given this scenario, the Bitcoin price will likely remain unaffected with a slightly bullish bias. The NUPL is at a two-month high following the rally from Monday. This suggests that investors are overall in profit and probably optimistic about further recovery but still cautious as a macro bullish signal has not yet been confirmed.
Bitcoin price, presently hovering above the $28,500 mark, has managed to flip the resistance level of $28,354 into a support floor. This level is crucial for BTC if it intends to rally up to $30,000. Since the broader market sentiment is still bullish, BTC has a chance to climb further and breach $29,000. However, the Relative Strength Index (RSI) suggests that the market is not too far from being overheated, and could be at risk of a correction.
In case of a correction, Bitcoin price is likely, at most, to fall back down to $27,418, maintaining a bullish lead. However, should it lose this support as well as that of the 50, 100 and 200-day Exponential Moving Averages (EMA), the bullish thesis would be invalidated, sending the cryptocurrency below $27,000 and towards $26,483.