Bitcoin soars on ETF optimism

• Bitcoin hits $35k for first time since 2022
• Cryptocurrency cheers prospects of Bitcoin ETF
• Bitcoin heavily bullish after conquering $31.5k resistance
• Key levels of interest found at $35k and $37k

Bitcoin hijacked the market headlines on Tuesday after punching above $35,000 for the first time since 2022!

Investor appetite towards the cryptocurrency has been stimulated by growing hype and excitement around a spot Bitcoin ETF attracting new investors.

This development is certainly a big deal for the crypto space, and this continues to be reflected in price action.

An ETF (Exchange Traded Fund) is an investment instrument that allows retail traders to gain exposure to an existing market or groups of markets.

A spot bitcoin ETF would provide investors easier and greater access to the world’s largest cryptocurrency by market cap without having to own it.

We have witnessed the Bitcoin ETF mania play out on several occasions since summer, especially back in June when prices surged after BlackRock filed an SEC application. It is worth keeping in mind that Blackrock is the world’s largest asset manager with a lot of influence and prestige.

More volatility could be on the cards for Bitcoin after Grayscale Investment saw positive developments for its Bitcoin ETC proposal.

Grayscale Investments runs the world’s largest bitcoin fund called the Grayscale Bitcoin Trust.

Taking a quick look at the weekly timeframe, bitcoin has blasted through the $31,500 resistance level – placing bulls in a position of power. However, the medium to longer-term outlook is likely to be influenced by the ETF developments.

The lowdown…

The SEC has long resisted approving a spot Bitcoin ETF. So far, it has rejected all spot bitcoin ETF applications, citing concerns about market manipulation and lack of ability to protect investors.

A US court has apparently paved the way for a first-ever Bitcoin ETF.

Grayscale’s court victory over the SEC coupled with BlackRock’s iShare Bitcoin Trusts listed on the Trust & Clearing Corporation (DTCC) is likely to feed the hype.

What next?

It is now a waiting game as the spotlight shines back on the SEC where regulators will decide to approve or reject the listings.

Are Bitcoin bulls back in town?

Focusing on the technical picture, bitcoin is heavily bullish on the daily timeframe.

Prices are trading well above the 50, 100, and 200-day SMA while the MACD trades above zero. The solid breakout above $31,500 is likely to keep bulls in the driving seat with the next key level of interest around $37,000. Should prices slip back below $31,500, this may encourage a decline toward $30,000.