Here’s what to expect from Bitcoin price after false ETF approval rumors
- Bitcoin price is in an uptrend on the daily chart, but is likely to trend lower soon on the breakdown of $28,369.
- A daily candlestick close above $28,369 could extend the uptrend to retest the $32,000 resistance level.
- A breakdown of the $26,744 support level will invalidate the bullish trend on the daily time frame.
Bitcoin (BTC) price suffered a major pump-and-dump on Monday after false reports of a spot ETF approval. However, a short-term uptrend is in play in the daily time frame, and this could kick-start a pullback.
Read more: Bitcoin liquidity on Binance plummeted during the ETF rumor-induced market rollercoaster: Kaiko
Bitcoin price ready to make next move
Bitcoin (BTC) price has set up three higher highs in the last 50 days, with the most recent one still in formation. The ETF rumor pushed BTC to retest the $30,000 psychological level and it currently trades around the $28,369 support level. This is the midpoint of the $24,888 and the 31,850 range, formed between July 13 and September 11.
If Bitcoin price produces a daily candlestick close below the $28,369 support level, it would confirm the persistence of the downtrend that has been happening for the last 50 days. In such a case, bears can open a short position after a daily candlestick close below $28,369 and expect a higher low to be formed around $27,000.
Supporting this outlook is the bearish divergence produced by the last two swing points of Bitcoin price and the Relative Strength Index (RSI)
BTC/USD 1-day chart
On the other hand, if Bitcoin price produces a daily candlestick close above $28,369 and sustains above it, it would invalidate the pullback scenario on the daily time frame. In such a case, the uptrend could propel BTC to the $30,000 and $32,000 levels.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
