Bitcoin (BTC) Rallies 3.02% to Reach $43,332: Key Market Insights and Analysis
BTC experienced a 3.02% surge on Monday, concluding the day at $43,332, marking a significant rebound from a 0.40% dip the previous day. This rise resulted in BTC holding steady above the $43,000 mark for the first time since January 16.
The driving force behind the surge was the trading volumes of BTC-spot exchange-traded funds (ETFs), which fueled buyer demand for BTC and the broader cryptocurrency market. Notably, iShares Bitcoin Trust (IBIT) surpassed Grayscale Bitcoin Trust (GBTC) in trading volumes on day 12, signaling a potential slowdown in BTC outflows from GBTC.
Despite initial excitement, BTC exhibited a degree of investor caution, briefly dipping to a session low of $41,835 an hour before an update from Bloomberg Intelligence ETF analyst Seyffart. However, BTC later rallied to a high of $43,337 in response to the news.
Although GBTC initially led in trading volumes on day 12, BitMex Research reported a continued decline in outflows, with GBTC experiencing $192 million in outflows. This trend contrasts with the $255 million in net outflows recorded on day 11, painting a positive picture of the BTC-spot ETF market.
In a move to make the BTC-spot ETF market more competitive, Invesco and Galaxy reduced the long-term fee on the Invesco Galaxy Bitcoin ETF. Charles Schwab’s potential entry into the market also generated speculation, with industry experts foreseeing a lower fee offering.
From a technical analysis perspective, BTC remained bullish, staying above the 50-day and 200-day exponential moving averages (EMAs). Breaking above the $44,690 resistance level could pave the way for a move towards the $46,020 resistance level. Conversely, a drop below the $42,968 support level might bring the 50-day EMA into play.
Investors are advised to keep an eye on BTC-spot ETF flows and volumes, along with updates related to the SEC v crypto case, to gauge market sentiment on Tuesday.
In Ethereum (ETH) analysis, the cryptocurrency maintained a bullish stance above the 50-day and 200-day EMAs. An ETH breakout from the $2,350 handle could signal a move towards the $2,457 resistance level. Conversely, a drop below the 50-day EMA and $2,300 support level might lead to intensified buying pressure at the $2,143 support level.
As investors navigate the market, staying informed about developments related to ETH-spot ETFs is crucial. The 14-period Daily RSI for ETH indicates a potential fall to the $2,143 support level before entering oversold territory.