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Bitcoin (BTC) rallied as much as 11% on Monday, breaking through the $28,000 barrier to briefly trade above $30,000. The world's favorite cryptocurrency rose to an intraday high of $30,127 as traders responded to a post of X, formerly Twitter, that Blackrock's Bitcoin ETF application had been approved by the SEC.
The tweet in question was from Cointelegraph, a prominent crypto news company, which stated that the ETF application had been approved by the U.S. Securities and Exchange Commission (SEC).
The tweet was simple:
Many market participants and other media outlets picked up the story as it came out of Cointelegraph – a reputable source! People began picking up trades and sent Bitcoin's price above $30,000, more than 10% higher than its Monday opening.
This, however, turned out to be fake news as Cointelegraph edited the tweet adding "Reportedly" and then deleted the post immediately after.
Similarly, after people started tweeting about the "reportedly" in the news, BTC retraced back to $28,000.
Now we know for sure that people are gonna react when a Bitcoin ETF ACTUALLY gets approved.
At the time of writing, Bitcoin was trading at $28,223, up 1.11% on the day, according to data from CoinMarketCap. The largest crypto asset by market capitalization was up 2% over the last week and 6% in the last 30 days.
It remains bullish in 2023 as it trades 70% higher than its January 1 opening and has increased more than 45% over the last 12 months.
The greatest hurdle remains the $30,000 psychological level. If bulls push the big crypto from the current level to break through this barrier, BTC could rise to tag the $32,000 supplier congestion zone.
Breaking this barrier would set the Bitcoin price on a clear path to a sustained recovery as areas around $40,000 and $50,000 come into the picture. Such a move could mark an entry into the much-awaited bull rally.
Supporting this positive outlook for the king crypto were several indicators as seen from the daily chart above. Note that BTC traded above the 2023 ascending trendline which suggested that the buyers were still bullish on the crypto on the longer timeframes.
Bitcoin also had flipped all the major moving averages into support. The 200-day Simple Moving Average (SMA) at $28,115, the 100-day SMA at $27,902, and the 50-day SMA at $26,798 provide strong support for the pioneer cryptocurrency on the downside.
The Stochastic RSI was facing upwards. Its position at 71 in the positive region reinforced the buyers' strong grip on the BTC price. Bitcoin's upward movement will gain traction once this trend-following oscillating indicator crosses the 80 mark into the overbought region.
On the flip side, the sellers may continue taking profits on the run up to $28,000 and the ensuing overhead pressure may extend the ongoing correction toward the SMAs. Below the 50-day SMA, Bitcoin may drop to revisit the $25,000 psychological level. Such a move would represent an 11% decline from the current price.
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