Analysts at BTIG cannot be happier with Bitcoin’s (BTC-USD) rise to over $34,570 before backing off in mid-afternoon trade on Oct. 24, 2023.
The firm cited a new technical trading range of $38,000 to $40,000. After Bitcoin cycled from $25,000 to $32,000 since April, the technical target does not come without risk. Bitcoin charts are only data points of the price. It does not foretell where BTC is headed to next.
The sudden, unexpected rally is as surprising as the SEC’s failure to stop a spot Bitcoin exchange-traded fund. This created pressure for short-sellers to liquidate their bet against the largest, blue-chip cryptocurrency. On Oct. 23, 2023, XS.com said that bears closed over $160 million worth of their short positions.
When the short-covering eases, BTC will likely re-test the $32,000 zone. The sector may enter a wait-and-see phase, as it waits for a Bitcoin ETF.
The SEC is not likely to speed up approval. It will take time to review the proposal. This could accelerate selling pressure, as impatient market participants look elsewhere for volatility. Selling Bitcoin now is not a good idea. The markets need an alternative to fiat currency and gold. Bitcoin has a permanent place in the cryptocurrency market to give investors another choice.
