bitcoin (btc) has made significant progress in recent days, with Glassnode co-founders Jan Happel and Yann Allemann expressing optimism about the future of the cryptocurrency.
According to their analysis, bitcoin has broken crucial resistance levels and is currently poised to strengthen its momentum. Notably, its Relative Strength Index (RSI) has surpassed the 70 level, a development that, based on historical trends, could indicate the potential for another substantial upward move.
“The RSI is now starting to become overbought and could extend towards the 100 mark, as is the norm in bull markets. In other words, as long as it maintains the bullish trend, the btc price would be inclined to keep the rally intact.” Happel and Allemann.
This RSI indicator is important in the cryptocurrency market as it helps traders and investors gauge the strength and momentum of price movements of major cryptocurrencies.
Source: SwissBlock
Currently, btc is venturing into uncharted territory, reaching levels not seen last year. Analysts warn that the cryptocurrency’s movement is not solely upward, emphasizing the importance of defining critical ranges for advantageous entry and exit.
Short-term support is consolidating around $33,700, with a pivot point at $34,400. In the medium term, there could be a retest of the $32,700 – $33,300 level, with the possibility of high volatility causing downward swings below current support levels.
Despite this, btc bulls maintain a strong immediate technical advantage, with a continued uptrend in price visible on the daily bar chart. The Glassnode co-founders anticipate btc possibly reaching $32,700 before a potential upward trajectory.
According to the latest data from bitcoin” target=”_blank” rel=”noopener nofollow”>CoinGecko, the current price of bitcoin stands at $34,938, with a slight drop of 0.5% in the last 24 hours. Over the past seven days, btc has shown an increase of 2.1%, reflecting its overall resilience to market fluctuations.
Excitement Surrounds Possible bitcoin ETF Approval
At the same time, the cryptocurrency ecosystem is abuzz with anticipation over the possible approval of a spot bitcoin exchange-traded fund (ETF). However, not everyone in the industry shares this enthusiasm. Arthur Hayes, founder of The Maelstrom Fund, has expressed concerns about the impact of institutional interest in bitcoin and the potential consequences of a large-scale ETF.
Hayes paints a scenario in which traditional financial giants like Larry Fink and others enter the bitcoin market and accumulate a significant portion of the freely traded btc in circulation. This could lead to the creation of bitcoin mining ETFs, in which institutional entities such as BlackRock would become important stakeholders in the mining operations themselves.
BTCUSD currently trading at $35,148 on the daily chart: TradingView.com
Institutional control and its consequences
Hayes’s argument It centers on the idea that asset managers like BlackRock are effectively “agents of the state” and are influenced by government policies. It suggests that if the State needs its citizens to remain within the fiat banking system to facilitate taxation through inflation, it makes sense for institutional entities to hold money in an ETF structure.
In this context, bitcoin becomes a financial asset rather than a decentralized digital currency. Hayes warns that if a BlackRock ETF or similar institutional vehicle grows too big, it could have a detrimental impact on cryptocurrencies. The reason is that the substantial amount of bitcoin held in the ETF becomes immovable, essentially removing it from circulation.
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