As the Bitcoin price continues to be submerging ahead of the announcement that BlackRock Inc, the world’s largest asset manager, is planning to apply for a spot Ethereum Exchange Traded Fund (ETF), investors are waiting to see how the crypto markets will react to the news. With heavy volumes on all exchanges, the potential for a massive reversal is present in the markets.
Looking at the BTC/USD Hourly chart on Coinbase, it is clear that the BTC price is currently in a triangle. The triangle supports a reversal higher; in fact, it is the first step for the bulls to push the price through the current resistance levels at $8,400 and $8,800. The next step is for bulls to push the price above the $9,400 resistance which will pave the way for the price to move much higher, with key target levels between $10,000 and $10,200.
If the $9,400 resistance is breached, the $10,200 zone will act as the next level of strong resistance. This level is also known as the Fibonacci retracement level or “Golden Ratio”, which acts as a powerful support/resistance indicator and is one of the favorite areas of traders. A break and daily close above this resistance level will open the gates for further upside and higher highs.
On the downside, we can see a strong support in the vicinity of $7,400-7,500 zone. However, if this strong support is breached, the Bitcoin price has a huge chance of dipping to the $6,400-6,500 zone.
Overall, the sentiment in the crypto markets is bullish, but given the uncertainty associated with BlackRock entering the crypto space, the market is likely to be volatile in the near future. However, if the market participants can push the price above the $9,400 level, there is a good chance for further upside in the Bitcoin price.