In a significant market development, Bitcoin (BTC) has sparked a substantial rally this October, surpassing the psychological threshold of $30,000 to reach approximately $34,152. This surge, creating a fourth higher high, is primarily driven by the potential approval of a spot Bitcoin ETF (TSX:EBIT). If the ETF receives official approval, BTC could potentially surge towards the $40,000 mark. However, a three-day or weekly candlestick close below support levels might signify an end to the current bull rally.
Mirroring Bitcoin's surge, Ethereum (ETH) also experienced an 11.48% rally over two days. The cryptocurrency cleared the significant resistance level of $1,727, pushing the Relative Strength Index (RSI) above 50. If Ethereum sustains above this level, it could extend its uptrend to $2,030. However, failure to maintain this momentum may trigger a correction to $1,551.
Meanwhile, Ripple (XRP), the remittance token, managed to clear resistance levels of $0.500 and $0.540 following a 12% five-day rally. This move partially collected buy-side liquidity above the $0.547 level. A bounce back from the $0.540 level could see XRP retest the next key hurdle at $0.668 in a 22% upswing. Conversely, a break below the $0.540 barrier might lead to support at lower levels.
The potential approval of a spot Bitcoin ETF is seen as a significant catalyst for these recent rallies in cryptocurrencies. The market is closely watching for any positive developments in this regard that could further fuel the uptrend in these digital assets.
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