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(Kitco News) – Cryptocurrency prices jumped Monday after an erroneous report that BlackRock’s Bitcoin spot (BTC) The application for exchange-traded funds (ETFs) had been approved by the Securities and Exchange Commission (SEC) and was widely publicized, sparking a rush to acquire tokens until BlackRock denied the news.
The market saw a sharp correction after the rumors turned out to be false, but prices started to rise again in the afternoon as traders took the opportunity to acquire the most promising projects in case the trend Bullish trend would continue from there.
Stocks also rose despite growing concerns over the Middle East crisis, as traders braced for a busy week of corporate earnings, including reports from Goldman Sachs, Bank of America, Tesla and Netflix.
At market close, the S&P, Dow and Nasdaq all finished in positive territory, up 1.06%, 0.93% and 1.20% respectively.
Data provided by TradingView shows that after trading near support at $26,800 since last Wednesday, Bitcoin price action began to accelerate late on Sunday as it climbed above $27,250. Following the fake Bitcoin ETF report, BTC price surged to $30,000, its highest price since August 9, before returning to support at $28,000 after the rumors were debunked.
BTC/USD Chart by TradingView
At the time of writing, BTC has started to climb again and is currently trading at $28,555.
“October Bitcoin Futures Price [were] higher in early U.S. trading Monday,” according to Kitco senior technical analyst Jim Wyckoff, who noted that “the bulls have regained their footing and prices are now in a sideways and choppy trading range.” .
Bitcoin futures 1-day chart. Source: Kitco
“Bulks and bears are on equal technical footing in the short term,” Wyckoff said. “The direction in which BC prices move above the resistance line or below the support line visible on the chart will most likely be the next trend direction in places.”
Addressing the long-term outlook for the crypto market, Solo Cessay, CEO and co-founder of Calaxy, said: “Compared to other assets, risk versus reward (or upside versus downside ) of cryptography looks much better. »
“If you look at asset prices for all the types of things that an investor, in theory, could buy, crypto seems to have the most upside or downside potential, given where asset prices are right now,” he said. he declared. “Real estate, the S&P 500, everything is still trading at record highs.”
Cessay pointed to rising inflation as the cause of the outlook, saying the Fed’s inability to rein in rising prices could put negative pressure on stocks and other traditional investments.
“We are very aware that the Federal Reserve still has a lot of work to do in terms of monetary policy and controlling the situation, given that inflation is still out of control,” he said. “For that reason, I see a lot more declines in the S&P 500 with things like traditional real estate versus things like Bitcoin, where I think the decline has been pretty much capped where it is.”
Cessay said he would “prefer to take the risk that Bitcoin goes back down to 20,000 while the S&P 500 falls 25-30%,” and suggested that “we are still quite far from all-time highs for crypto.”
“Crypto is one of the few assets that has an incredible security offering,” he added. one might think, entering a BTC position in the $20,000s. I think fair market value and strength of supply behind people wanting to succeed will be something that will only keep it well supported.
Addressing Monday’s erroneous Cointelegraph report and the resulting boost to the BTC price, Cessay said that “the slippage shows how close we are to a crazy rise, and with the approval percentage which seems quite high, it’s hard not to be bullish on crypto. I think given the price levels we’re at right now, it looks attractive.
While many analysts are calling for a possible decline in BTC to $20,000, particularly following the retracement from $30,000 to $28,000, MN Trading founder Michaël van de Poppe. note that Bitcoin “is still up over 4%, despite today’s wick and Cointelegraph’s rampage,” and said “the trend is up and the dips are there to be bought.” The ETF will be there at some point, but not today.
#Bitcoin continuing the rally towards $28,100.
Crucial levels of support; $27,650 (asset) and $27,300.
Both are identified as potential entry points for this rally to continue.
Exceed $28,100 -> $30,000. pic.twitter.com/smtv5lgm2H
– Michaël van de Poppe (@CryptoMichNL) October 16, 2023
Altcoins benefit from the rise of Bitcoin
The majority of tokens in the top 200 benefited from Bitcoin’s rally, as all but around 20 projects posted gains on Monday.
Daily performance of the cryptocurrency market. Source: Coin360
UMA (UMA) was the best performer with a 20% gain, followed by a 16.46% increase for Bitcoin SV (BSV) and a 15.4% gain for Stratis (STRAX). Loom Network (LOOM) suffered the biggest loss with a 23.8% drop, while Orbs (ORBS) fell 8.3% and STP (STPT) lost 6.9%.
The global market capitalization of cryptocurrencies now stands at $1.09 trillion and Bitcoin’s dominance rate is 50.8%.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided. however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade any commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage arising from the use of this publication.