Bitcoin price is up about 17% over the past week as traders appear to be exiting short positions. This may be due to analysts waiting for the U.S. Securities and Exchange Commission (SEC) to approve a Bitcoin ETF, which could spark a year-end crypto rally. At the time of writing, BTC is changing hands at $49,426.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price rises toward $50,000 on hopes for US ETF approval
When Bitcoin price rose within $500 from the $50,000, this move toward the key psychological resistance helped pull the Crypto Fear & Greed Index out of the “Fear” zone and into the “Neutral’ state on October 4. And now, this indicator has changed to “Greed,” signaling that the market sentiment has changed, and the uptrend is also heading towards new and better levels.
Crypto Fear & Greed Index as of October 5 | Source: Alternative.me
The price action for the top crypto has seen increased volatility in recent weeks as countries like China have increased their crackdown on cryptocurrencies, a move which former United States Central Intelligence Agency agent Edward Snowden says has just made Bitcoin stronger, as AZCoin News reported.
Bitcoin’s rally also comes when major social media and networking platforms such as Facebook, Instagram, and WhatsApp have gone offline. At roughly the same time on March 13, 2019, all three platforms reported a major outage that lasted more than 24 hours. At the time, Facebook attributed the problems to a server configuration change.
The interruptions may impact community engagement around crypto and blockchain projects, but Discord, Twitter, YouTube, and many other platforms are still functioning normally. Many Crypto Twitter users are already using the incident to highlight the need for a decentralized social network built on blockchain.
This Facebook incident made many people question that it would never go down if they built Facebook on a blockchain.
According to Santiment, with Bitcoin on the cusp of returning to $50,000 for the first time in four weeks, this comes as the percentage of supply on exchanges has now dropped to its lowest level since June 4, 2019. The 30-month low further de-risks chance of a major selloff.
Source: Santiment
The overall cryptocurrency market cap now stands at $2.160 trillion, and the Bitcoin Dominance rate is 43%.
Read more:
- China Ban Drives Users To Withdraw Bitcoin From Huobi Exchange
- Bitcoin Price Has The Ability To Recover Significantly Despite The Suppression