December 7, 2023

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Bitcoin Price Trading Near $31.7K Key Pivot Point – Can BTC Bulls Maintain Volume?

Bitcoin Price Trading Near $31.7K Key Pivot Point – Can BTC Bulls Maintain Volume?

The price of Bitcoin (BTC) rose above the $31,000 mark on October 23, hitting its highest level in almost four months when BTC price was trading at $31,800.

The new bullish push comes as analysts and investors express excitement over new developments that could signal the imminent launch of a spot Bitcoin ETF.

Referring to Johnson’s post, Eric Balchunas, chief ETF analyst at Bloomberg, warned his followers not to get too excited, explaining that the amended iShares (BlackRock) S-1 document shows BlackRock could be preparing to seed private ETFs. and that “Detect it “It shows another step in the launch process.”

Balchunas explained the process, saying:

Background: An ETF is created when initial funding is provided (usually) by a bank or broker-dealer used to purchase a few creation units (in this case Bitcoin) in exchange for shares of the ETF that can be traded on the open market on day one. “

Related: EY says the Bitcoin ETF will spark huge demand from institutions

Bitcoin spot volumes and institutional investor activity are making waves

From a market analysis perspective, Bitcoin’s rapid move through the $30,000 region appears to be driven by spot volume.

BTC/USDT 1-hour chart. Source: Philo

Data from CoinMetrics also shows an uptick in weekly crypto asset flows by institutional investors into digital asset investment products.

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Weekly crypto asset flows. Source: CoinShares

CoinShares analyst David Butterville He said,

“Digital asset investment products saw inflows for the fourth consecutive week totaling $66 million, bringing the total inflows in the last four weeks to $179 million. Following the recent price rise, total assets under management (AuM) increased by 15% Since the lows in early September, their total now stands at nearly US$33 billion, the highest point since mid-August.

folders for Futures Continuing Medical Education It also doubled, reflecting that spot and futures traders have new bullish sentiment around Bitcoin’s recent price action.

Bitcoin futures volume and open interest. Source: CME Group
Bitcoin futures volume and open interest. Source: CME Group

The rise in CME and spot volume, in contrast to the rise in open interest in Binance futures, suggests that this week’s action could be more than just a leverage-loving retail trader trying to open buy and sell positions on the margin of recent price action.

On the technical analysis side, Bitcoin’s 20-day moving average has risen slightly above the 200-day moving average, which is a positive move, but many traders will be waiting for the all-important golden cross where the 50-day moving average is. It is moving above the 200 day moving average.

BTC/USDT daily chart. Source: Trading View

In terms of Bitcoin market structure on the longer time frame, successive daily closes above the $31,700 level will be notable as daily or weekly higher candles above this level put the price above a major pivot point and entering an area not seen since May 2022.

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