- Bitcoin hits highest level in 18 months
- Cryptocurrency boosted by ETF excitement
- Bullish flag seen on H4 chart
- Weekly resistance level might act as catalyst
Bitcoin jumped to a fresh 18-month high on Thursday as excitement returned over simultaneous approvals of spot Bitcoin ETFs.
Starting from today, the SEC has an eight-day window to potentially approve all pending spot Bitcoin ETF fillings - including the world’s largest bitcoin fund called the Grayscale Bitcoin Trust. This is a welcome development for the cryptocurrency space given the growing ETF hype, injecting Bitcoin bulls with renewed strength.
As highlighted in the past, a spot bitcoin ETF would provide investors easier and greater access to the world’s largest cryptocurrency without having to own it - potentially attracting new investors as a result.
Focusing on the technical picture, bitcoin is currently ruled by bulls and a solid uptrend can be seen on the daily charts.
Prices are fast approaching weekly resistance at 37,448 and this level might act as a catalyst for either bulls or bears. For bulls, it will be a continuation of the current impulse wave and for bears it will be the start of a possible correction wave.
On the H4 chart a huge bullish flag is visible with the price just having broken out and heading for the weekly resistance level. Both the 50 Exponential Moving Average and the Moving Average Convergence Divergence (MACD) confirm the upward momentum.
If prices reach the weekly resistance level at 37,448.98, two scenarios become possible.
Allowing the market structure to confirm, a possible bounce and then a retest to the downside will act as a bearish trigger for a daily correction wave to start.
On the other hand, a break though the weekly resistance level and then a retest will be a bullish trigger for a continuation of an impulse wave in the daily uptrend.
For both scenarios, good risk management is paramount since wild swings are often seen on this volatile instrument.