How Bitcoin’s revival to $35K can affect its upcoming movement
- Bitcoin climbed above $35,000 for the second time in a few days as the iShares ETF got relisted.
- Greed in the market rose and BTC may be due for a pullback.
The price of Bitcoin [BTC] climbed above $35,000 again after the king coin lost hold on the region a few days ago. According to Santiment, the recovery could be linked to the rising optimism in the market, caused by the re-listing of BlackRock’s iShares ETF on the Depository Trust and Clearing Corporation (DTCC) market.
📰 #Crypto markets have continued to stay high Wednesday. #Bitcoin and other prices are being fueled by optimism surrounding the impending exposure rise from probable #ETF listings. With #Blackrock's #iShares relisted on the #DTCC, we saw yet another boost. 📈… pic.twitter.com/XVfy7tKOBA
— Santiment (@santimentfeed) October 25, 2023
Reintroduced and revived
For the unaccustomed, the DTCC is a US-based corporation providing clearing and settlement services for the financial market. Two days ago, the iShares ETF appeared on the DTCC market. This led market players to assume that the ETF application by the firm could be approved sooner than initially projected.
But, a few hours later, the listing was yanked off, and moments after, the U.S. SEC fined BlackRock $2.5 million. However, the fine was unrelated to the listing on the DTCC. Rather, it was a matter of the institution’s failure to disclose some of its investments.
Although BTC was changing hands at $34,445 at press time, the fear and greed index had risen to a value of 71. With a score from 0 to 10, the crypto fear and greed index is an indicator that helps to gauge market sentiment.
It can also be helpful in identifying entry and exit in the market. Values below 50 signify fear. And at times, a neutral position. Values between 50 and 74 indicate greed while those from 75 and above show extreme greed.
The value of the coveted index mentioned above means that there was enough profit in the market. It also infers that the BTC price could be due for a correction.
Previously, AMBCrypto reported how the king coin may not follow historical trends where a heated market leads to a significant drawdown.
Hold on! A correction could be coming
But now the market seems to agree that a pullback might be possible. This was also reinforced by the weighted sentiment which had declined to -0.071. As a measure of the positive/negative commentary, the negative value of the weighted sentiment means correction could actually be on the cards.
Analyst and trader Ali Martinez also shared the same opinion via his post on X (formerly Twitter). According to Martinez, BTC could experience a 5% correction down to $33,000. However, he also noted that the pullback could drive another Year-To-Date (YTD) high for the coin.
#Bitcoin looks like it wants to pull back before advancing higher!$BTC appears to have formed an ascending triangle on the hourly chart. As #BTC trades below the hypotenuse, the odds increase for a 5% correction toward $33,000.
— Ali (@ali_charts) October 26, 2023
One tool that could be useful in identifying how far Bitcoin might pull back is the liquidation heatmap. This indicator tells traders the certain regions where there could be high levels of liquidations.
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The colors of this indicator range from purple to yellow, with the latter being the levels with the highest level of possible liquidations. From HyblockCapital’s data, BTC’s high level of liquidation could be between $30,750 and $33,172.
Therefore, traders with short positions and expecting a long period of profit-taking that could plunge the Bitcoin price may be at risk. For those with long positions, watching out for where to keep Stop Loss (SL) remains important.