Analyses

Bitcoin ETF Speculations Spreading in Crypto Community – Analysis, 18 Oct

Bitcoin Silver and Golden Coins Technical Analysis Bitvalex 18 October 2021

In the middle of last week, speculations about the potential launch of Bitcoin ETFs spread in the crypto community. First, most crypto-related forums and social media platforms published a copy of the pre-approval notice of Valkyrie Bitcoin Strategy ETF by Nasdaq:

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Source: Twitter

Second, asset manager ProShares filed an updated prospectus of its potential Bitcoin ETF with the U.S. Security and Exchange Commission – a signal that the launch of this ETF will happen very soon:

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Source: Twitter

The cryptocurrency enthusiasts expect these Bitcoin ETFs to start trading on Monday or Tuesday this week:

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Source: Twitter

The beginning of the launch of Bitcoin ETFs in the U.S. may turn out to be a game-changer for the whole crypto industry. Millions of investors from the traditional centralized financial world will receive access to cryptocurrency investing via these ETFs. According to Statista.com, the New York Stock Exchange and Nasdaq (the two largest exchanges in the U.S.) have a combined market cap of over $50 trillion or almost 20x the crypto market cap as of August 2021:

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Source: Statista.com

The positive news relating to the potential launch of the Bitcoin ETFs was the principal market price driver this past week. Most of the top cryptocurrencies recorded a decent price increase. Bitcoin has surpassed the psychological level of $60,000 for the first time since April-May.

Now, the Monday market starts with mixed price dynamics, undergoing a small intra-day consolidation. According to Coin360.com, one Bitcoin costs €53,359.77 (+1.82%), one Ethereum – €3,300.64 (-1.72%), one DOGE – €0.2052 (+6.49%), and one UNI – €22.17 (-4.49%): 

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Source: Coin360.com (Daily crypto market performance)

Now, let us look at the price charts of the leading cryptocurrencies against the euro in the most noteworthy time frames.

BTC/EUR

In the weekly chart (1W), after the Bullish Engulfing, BTC/EUR has formed Three White Soldiers – a typical bullish pattern:

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This candlestick formation confirms the change in market sentiment from bearish to bullish. According to the technical analysis theory, long-term traders use this pattern as an entry point.

As we already mentioned in our previous analysis, we think that BTC/EUR may reach the price target of approximately €58,503:

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We've based our price prediction on the exit of BTC/EUR from the Bullish Flag and the renewal of the uptrend in the 4-hour time frame (4H). As can be seen from the chart, BTC/EUR has already reached the 61.8 Fibonacci extension level (€50,613). Therefore, the final goal is either the full height of the potential new wave or the level of approximately €58,503.

ETH/EUR

In the weekly chart (1W), ETH/EUR has confirmed the bullish sentiment and the uptrend resumption by forming a bullish candlestick immediately after the recent Bullish Engulfing and the Doji:

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Nevertheless, the bulls should be very cautious because, in the weekly linear chart, ETH/EUR is at the level of the previous local highs:

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Theoretically, the price of Ethereum may face resistance at this level, and a pullback may happen at any time. However, if the price breaks through this potential resistance, another solid bullish signal will occur because, in the weekly linear chart, there is another bullish technical pattern – a Cup and Handle (C&H):

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DOGE/EUR

Since our previous analysis, almost nothing has changed in the (1D) daily chart of DOGE/EUR. The price of the cryptocurrency continues to consolidate at the 30-day Moving Average (MA 30) and the 90-day Moving Average (MA 90):

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As we already mentioned in our last analysis of DOGE/EUR, we would like to see at least an exit from the Descending channel (downtrend) in the 4-hour time frame (4H) to start looking for a buy signal:

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However, for now, we will continue to observe the price chart and remain in wait-and-see mode.

UNI/EUR

As we already know very well, in the 4-hour chart (4H), UNI/EUR has exited the Descending channel:

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However, the price of Uniswap has still not surpassed the level of the last local high from the channel. Therefore, we prefer to stick to our plan and wait for the price to top the previous local high (€23.30). We would open a small long position only in this case.

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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.


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