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Bitcoin (BTC) suddenly leaped on Monday, recording the longest daily green candlestick since September 2022 to briefly trade above $35,000. Related assets like Wrapped Bitcoin (WBTC) saw significant gains, rising over 12% in the last 24 hours.
"WHILE MEN SLEPT" 😴: Bitcoin Skyrockets to $35K, Leaving Critics in the Dust 🚀! Wrapped Bitcoin (WBTC), Polkadot (DOT), Polygon (MATIC), Ether (ETH), and XRP Tokens All Surge 6-15% as Bitcoin Hits Highest Point Since May 2022! 💰💥 #CryptoRevolution #BitcoinBoom pic.twitter.com/hPAXxMChTT
— GT_MÕ$€$ (@EGodstimeMoses1) October 24, 2023
The rally was driven by investor excitement surrounding the possibility of a Bitcoin exchange-traded fund (ETF) entering the market in the near future. The tokenized version of Bitcoin – WBTC – peaked at $35,144 on Tuesday, the highest since May 2022, when the collapse of the Terra ecosystem set off a global sell-off of digital assets.
WBTC Flashes Above $35K on BTC ETF Optimism
BlackRock’s spot Bitcoin ETF application took a positive step forward when its proposed product appeared on the Depository Trust & Clearing Corporation (DTCC) website. DTCC is the body that clears Nasdaq trades
According to an X post by ETF specialist Eric Balchunas, the BlackRock product has been dubbed “IBTC,” with the analyst acknowledging that the process of bringing the ETF to market continues to strengthen.
The iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the ticker will be $IBTC. Again all part of the process of bringing ETF to market.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0
— Eric Balchunas (@EricBalchunas) October 23, 2023
This follows an indication by the asset manager in their recent spot Bitcoin ETF amendment that they would be seeding the ETF in October.
Seeding an ETF refers to the provision of initial funding by a bank or broker-dealer to purchase a few creation units (in this case, BTC) in exchange for ETF shares that can be traded in the open market on the first day.
Note: Seeding is typically not a lot of money just enough to get ETF going. So I wouldn't read this as 'omg Blackrock is buying a ton of bitcoin' at all but more the fact they doing it and disclosing it shows another step in the process of launching.
— Eric Balchunas (@EricBalchunas) October 23, 2023
Additionally, reports have emerged that Grayscale’s victory has been upheld after the court ruled in favor of the investment firm over the U.S. Securities and Exchange Commission (SEC), asking the commission to review the BTC ETF application.
BREAKING: 🇺🇸 US Court of Appeals orders SEC to review Grayscale's spot #Bitcoin ETF application. pic.twitter.com/RiyHU8Mpcp
— Bitcoin Archive (@BTC_Archive) October 23, 2023
Following the news, Wrapped Bitcoin shattered the resistance at $32,000 for the first time in over 17 months, marking a staggering 13% gain over the last 24 hours.
A few hours later, the Bitcoin-pegged stablecoin flushed above $35,000, reaching as high as $35,144 on Coinbase. At the time of writing, WBTC is exchanging hands at $34,736.
If the ongoing recovery in the price continues, we might see WBTC break past the $40,000 mark in the near term.
Wrapped Bitcoin Price Faces Weak Resistance on the Upside
Wrapped BTC finally broke through the stubborn resistance between $30,000 and $32,000 that had suppressed the price since June 2022. Flipping this area into a demand zone led to massive buy orders that saw the cryptocurrency rise to over $35,000.
All the moving averages face up, and the Relative Strength Index (RSI) displays a steep upward trajectory. The price strength at 87 in the overbought region suggests that the price is under the control of the buyers and that there is still more room for the upside before it gets to 100.
Bulls will now attempt to push the price back above $35,000, with the short-term target set at $40,000. This would represent a 16% ascent from the current price.
WBTC/USD Daily Chart
Also supporting the positive outlook for Wrapped Bitcoin were the up-facing Exponential Moving Averages (EMAs). These trend-following chart overlay indicators also sent a call to buy WBTC on the daily chart. This occurred over the weekend when the 50-day EMA crossed above the 100-day EMA, signaling the start of the uptrend.
On-chain data from IntoTheBlock also supports this bullish narrative. The firm’s In/Out of the Money Around Price (IOMAP) model showed that Bitcoin faced relatively weak resistance on the upside compared to its support on the downside.
The demand area between $26,500 and $28,100 is where all the EMAs lie, as shown in the chart above. From the IOMAP chart below it can be seen that this area is close to the $29,289 to $30,350 price range, where approximately 6,120 WBTC were previously bought by 4,610 addresses. This area is robust enough to produce the demand pressure to bolster Wrapped Bitcoin higher.
Wrapped Bitcoin IOMAP Chart
The same IOMAP showed that WBTC does not face stiff barriers above the current price. Therefore, the path with the least resistance is on the upside.
While WBTC displayed strength, the upward price momentum is also lifting altcoins. Ethereum, the second largest cryptocurrency by market capitalization, is up 10% daily, while Solana (SOL) has gained a whopping 11%. Cardano (ADA) was up 8%, while Dogecoin (DOGE) and XRP were lagging slightly with 4% gains each.
The global crypto market capitalization is up 9% over the last 24 hours to $1.27 trillion, according to data from CoinMarketCap.
WBTC Alternatives
Even as investors pump their money into today’s best-performing cryptos like Wrapped Bitcoin, they could also turn to new crypto in presale, such as Bitcoin Minetrix (BTCMTX), to diversify their portfolio.
Bitcoin Minetrix (BTCMTX) is a new crypto project that allows users to stake the token and receive credits, enabling stakers to mine BTC and receive mining rewards via its cloud platform.
#BTCMTX introduces an efficient cloud mining solution for the #Crypto community.
Previous concerns about expensive equipment and cloud mining deceptions held many back.
This decentralized strategy ensures a transparent and protected mining venture.⚒️ pic.twitter.com/FPZHxkB74j
— Bitcoinminetrix (@bitcoinminetrix) October 24, 2023
Its native crypto, BTCMTX, is currently in stage 3 presale, with each token going for $0.0112. The team behind the project has already raised more than $2.19 million, with the soft cap of $3.1 million expected to be hit within three days.
Announcement! 📢#BitcoinMinetrix has achieved a monumental milestone, surpassing $2,000,000 raised!
We are now also less than 40 minutes away from the start of Stage 3! 🪙 pic.twitter.com/iZENKYsxcd
— Bitcoinminetrix (@bitcoinminetrix) October 23, 2023
Anyone interested in joining the platform can buy BTCMTX in exchange for ETH, USDT, BNB, or via credit card.
Visit Bitcoin Minetrix here for more details.
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