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Bitcoin Gets Overbought Pointing to a

The BTC/USD pair crashed to a low of 24,735 last week as concerns about regulations continued.

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  • Sell the BTC/USD pair and set a take-profit at 28,500.
  • Add a stop-loss at 31,000.
  • Timeline: 1 day.
  • Set a buy-stop at 30,500 and a take-profit at 31,500.
  • Add a stop-loss at 28,000.

The BTC/USD pair continued rebounding as sentiment in the crypto industry improved. Bitcoin price crossed the important resistance point at $30,000, which was much higher than this month’s low of $24,735.

Bitcoin prices continued rising as sentiment in the crypto industry jumped. Data shows that the crypto fear and greed index jumped to the greed zone for the first time since May this year. The fear and greed index by CNN Money soared to the extreme greed zone of 75.

Greed in the crypto industry has been fueled by the recent decisions by large companies to seek exposure to the industry. Last week, Blackrock announced that it had filed for the iShares Bitcoin Trust. If accepted, it will be the first ETF for spot Bitcoin.

Other large companies have also filed for their spot ETFs. For example, Invesco and WisdomTree, which have over $1.4 trillion and $87 billion, also filed for their spot ETFs. A spot ETF will be different from the existing fund, which tracks Bitcoin futures.

Meanwhile, Deutsche Bank announced that it had filed for a crypto custody license in Germany. Like the other companies, this is a large firm that has over 1.4 trillion in assets. Therefore, if it receives a license, there is a possibility that other companies in Europe will move to the industry.

The real impact of these moves on cryptocurrencies will be muted. For one, the SEC will take months to review the ETF providers. And there is a likelihood that it will not accept the funds since it has rejected them before. Therefore, the BTC/USD pair jumped because the positive news helped to ameliorate the recent regulatory crackdown.

The BTC/USD pair crashed to a low of 24,735 last week as concerns about regulations continued. It then staged a strong comeback since last Friday when Blackrock unveiled its ETF news. The pair moved above the key resistance point at 30,000 for the first time since April.

Bitcoin price has moved above the 25-day and 50-day moving averages while the MACD has moved above the neutral point. The Relative Strength Index has moved to the overbought level. Therefore, there is a likelihood that the pair will pull back on Thursday as some investors take profit. A move above the resistance at 31,000 will signal that there are more buyers in the market.


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