Bitcoin Gains 9% as Bulls Target $70K While SEC ETF Options Boost Market Sentiment

Bitcoin's bullish weekend price action might be a preview of the week ahead. 

Source:news.bitcoin.com

Bitcoin has gained about 9% this week, signaling strong buying interest from bulls. Although the price faces resistance around $69,000, bulls are holding their positions, indicating that they expect the rally to continue. QCP Capital informed its Telegram subscribers that the rise in US equities and the weakening Japanese yen are likely to increase risk on sentiment ahead of the US elections. The firm noted that this could push risk assets higher and reinforce our Uptober narrative. Additionally, the US Securities and Exchange Commission’s approval for Bitcoin ETF options listings on the New York Stock Exchange and Chicago Board Options Exchange is another positive for Bitcoin.

Bitcoin Price Outlook

Bitcoin is encountering resistance as it approaches the key $70,000 level, but a positive indicator is that bulls are maintaining their ground. The upward-sloping 20-day exponential moving average (EMA) at $65,010 and the relative strength index (RSI) near the overbought territory suggest that bulls currently have the advantage. If buyers push the price above $70,000, the next target could be $72,000. However, bears are likely to strongly defend the zone between $70,000 and $73,777.

For bears to regain control, they need to quickly pull the price below $66,500 and then beneath the 20-day EMA. If successful, the BTC/USDT pair could drop to the 50-day simple moving average (SMA) at $61,749. The RSI on the 4-hour chart shows a bearish divergence, indicating that bullish momentum may be weakening. A break and close below the 20 EMA would suggest short-term traders are taking profits, potentially leading the pair down to the 50 SMA. On the other hand, if the price moves higher and breaks above $69,000, it would signal continued positive sentiment and indicate that bulls are buying on dips. The pair could then climb to $70,000 and potentially $72,000.

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