Hopes of new ETF approval push Bitcoin price up to $40,000, but can bulls maintain current volume?

By Selena On Aug 6, 2021

Cryptocurrency investors see over 6% intraday gains in ETH following the London hard fork. Meanwhile, Bitcoin price is no less competitive, surpassing $40,000 after news of an upcoming series of new Bitcoin ETF filings. This led to a rally that pushed BTC 9% higher. At the time of writing, BTC is changing hands at $40,382.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price securing a close above $40,000 will give bullish pro traders a sizeable advantage

After the sell-off that sent BTC down to $37,280, the bulls joined in, and the subsequent massive increase in volume took BTC’s price to an intraday high of $40,775.

As Bitcoin Archive, a BTC analysis and market commentary, stated:

Both #Bitcoin strategy ETFs could hold Canadian Bitcoin ETF shares, which hold #BTC directly.

— Bitcoin Archive ??? (@BTC_Archive) August 5, 2021

Recent comments from the United States Securities and Exchange Commission (SEC) Chairman Gary Gesler about the viability of a Bitcoin ETF were followed by several new ETF applications being filed on August 5th, and investors are hopeful that the chance of approval has increased.

Yesterday, French asset manager Melanion Capital won regulatory approval to launch an ETF tracking Bitcoin and several crypto-related stocks. Also, yesterday, as AZCoin News mentioned, Invesco filed with the SEC to list an ETF with indirect exposure to BTC via futures and other investment vehicles.

Large institutions are easing into the crypto market with a Bitcoin-first approach. However, it will likely take some time before investors fully embrace altcoins such as ETH as regulatory hurdles must be cleared first.

Regarding the current bullish price action, analyst Will Clemente posted the following chart to show BTC’s past performance and suggested that:

“Now we add in this yellow mid-line. This served as resistance to the 2017 dead cat, support in January 2021, and the price level dropped once broken through in May. IMO this would be a key level ($54K & rising) to watch for confirmation/rejection. (2013 vs. 2017 reaction).”

Source: Will Clemente/Twitter

Meanwhile, Bitcoin addresses that hold 100 to 10,000 $BTC currently own 49.11% of the total supply, and they’re still very near the all-time high of 49.18% made just last week. This key group of whales is one of our most solid indicators to watch.

Source: Santiment

Elsewhere, Ether was in the spotlight as the latest hard fork upgrade, dubbed “London,” officially activated on the Ethereum blockchain network. The upgrade contributed to bullish price action, as AZCoin News reported, as ETH rose about 6% over the past 24 hours. As of press time, ETH was changing hands at around $2,807, up from about $2,600 right before the changes took effect.

According to Santiment, “Ethereum hit a 2-month high today of around $2,840, and this largely appears to be attributed to the London Hard Fork.”

Source: Santiment

Meanwhile, XRP remains at $0.73. Perhaps market momentum is not enough to drive prices higher. Let’s continue to look forward to the upcoming developments of the Ripple case and the SEC. The overall cryptocurrency market cap now stands at $1.669 trillion, and Bitcoin Dominance is 45.7%.

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