Today’s rise in BITCOIN prices may be due to heightened speculation that an exchange-traded product will be approved in the coming weeks. The BTC/USD prices have surged by 7% in the last 24 hours and a striking 32% last week. Thus, Bitcoin spiked to $55.8K during the previous session.

What if BTC/USD fails to continue the upward trend?

If bitcoin fails to break through the $56,000 barrier level, it may begin a new downward trend. On the bearish side, the first significant support is emerging at around $54,200. The trend line and the $53,000 mark are the next big supports. 

BTC/USD is close to the 50% Fib retracement level of the upward movement from the swing low of $50,366 to the high of $55,777. If the price breaks below the trend line support, it may fall towards $50,000 and the 100 hourly SMA.

Eric Balchunas responded to Morgan Creek Digital

This bullish market movement for BTC solely may be a kind of front-running by huge bag holders in anticipation of the Securities and Exchange Commission’s (SEC) approval of a futures ETF.

On Oct. 7, Bloomberg senior analyst Eric Balchunas responded to Morgan Creek Digital founder and partner Anthony Pompliano’s remark that “things are going to get nuts” if an ETF is approved in Q4. Balchunas stated that approval was 75% certain.

Mike McGlone’s Stance on Bitcoin

Bloomberg Intelligence commodity specialist Mike McGlone anticipated in late September that the SEC would approve a Bitcoin futures product “possibly by the end of October.”

McGlone speculated on October 5 that Bitcoin price resistance at $50,000 was going to give way to protracted support in the fourth quarter.

The Bitcoin Price Rally Continues – Bitcoin spikes to $55.8K

Bitcoin’s price began to rise sharply above the $50,000 resistance level. BTC has even broken above the $52,000 barrier mark and is trading above the 100 hourly simple moving average.

The price rose so far that it burst through the $53,200 resistance level. It even surpassed the $55,000 mark. Thus, BTC/USD has formed a high of around $55,770 and is now consolidating gains. On the downside, there is immediate support at the $53,522 mark, which is extended by an intraday pivot point level.

Bitcoin Price Prediction – Daily Timeframe

The BTC/USD pair is nearing the 23.6 percent Fib retracement level of the uptrend from the swing low of $50,366 to the high of $55,777.On the hourly timeframe of the BTC/USD pair, a connecting bullish trend line is forming with support of around $53,000.

On the upswing, an early resistance level is near $55,500. The first significant resistance is near $56,200, above which the price could continue higher. The next major resistance for BTC buyers could be around $58,000. Any additional increases might pave the stage for a push towards the $60,000 mark.