Bitcoin’s resilience above $30,000 during the recent Wall Street opening has sparked optimism, challenging a potential ‘bearish fractal.’ Currently trading near $30,700, Bitcoin is up by 2.5% as of October 23.
After the October 22 weekly close, Bitcoin experienced rapid gains, reaching almost $31,000—its highest levels since July. Analysts, including Rekt Capital, emphasize the importance of breaching the $31,000 level to dismiss the bearish scenario portrayed by a double-top formation in the chart.
The Average Active Investor (AVIV) profit ratio, a crucial metric also known as True Mean Market price (TMM), recently crossed a significant level. At $29,780, TMM, representing the point where BTC/USD spends exactly 50% above or below, is now below its spot price, suggesting a potential shift in market dynamics.
The anticipation of a U.S. spot ETF approval for Bitcoin, despite not yet receiving the green light, has led to increased bullish sentiment in the crypto market. Data from Glassnode indicates a surge in inflows through over-the-counter (OTC) trading desks since late September. The Purpose Bitcoin ETF, holding around 25,000 Bitcoins, has also observed consistent inflows, reflecting positive market sentiment.
While the approval of a Bitcoin ETF is not finalized, the potential is reshaping the landscape of digital assets. Notably, the Grayscale Bitcoin Trust (GBTC), a significant institutional investment vehicle, is experiencing a reduced discount to the Bitcoin spot price, marking its smallest negative margin since December 2021. The market awaits further developments, emphasizing the importance of Bitcoin surpassing the $31,000 level for a more optimistic outlook.