Bitcoin saw a brief stall in its rally which triggered a decline back down to $33,700. This decline, seemingly out of nowhere, may have not been random given some developments in the crypto space. As the rally resumes once more, here’s a look at these developments.

BlackRock Spot Bitcoin ETF Listing Taken Down

The BlackRock Spot Bitcoin ETF was first listed on the Depository Trust and Clearing Corporation’s (DTCC) on Tuesday, triggering the first wave of the Bitcoin rally. However, in the same day, crypto community members noticed that the listing on DTCC had been mysteriously taken down.

The listing would remain off the site for several hours while community members speculated on what could be the cause of this. Around this time, the price of Bitcoin began to fall, seemingly driven by the fact that investors saw the removal of the BlackRock listing as a sign that a Spot Bitcoin ETF wasn’t coming as soon as they expected.

Hours later, Bloomberg Analyst Joe Light revealed that the listing was back up on the site. Apparently, the initial listing and the subsequent ones had carried one small change in detail which was a change in the Create/Redeem section from a “Y” to a “N.”

Another Bloomberg analyst James Seyffart explained that this likely meant that it was to indicate whether the ETF listing was open to creations/redemptions. When Light asked if this change could point out a launch without using that attribute, to which Seyffart said:

“I personally don’t think this means all that much if I’m being honest. Think it indicates Blackrock is getting everything ready to launch if and when they get an SEC approval. And that the N just means it’s not open for create redeem because it’s not live yet.”

BTC recovers to $34,400 | Source: BTCUSD on Tradingview.com

BTC Price Bounces Back

The return of the BlackRock Spot Bitcoin ETF on the DTCC sparked enthusiasm across the space once more than it did before. The price of Bitcoin quickly started to recover and by Wednesday morning, was back above the $34,000 mark once more.

These events outline the importance of a Spot ETF and how it is the major driver behind the most recent price rally. So an approval or a rejection would both have a major impact on the digital asset’s price. For one, an approval would likely see Bitcoin clear above $40,000. However, a rejection would be detrimental to the rally, and will probably send it back below $30,000.

Presently, Bitcoin is maintaining bullish momentum above $34,100. But it is seeing small losses of 0.99% on the 24-hour chart, and its daily trading volume is down 34.58%.

Except for stable coins, other digital assets are still trading in the red

The overall crypto sector recorded huge losses on Tuesday’s trading session and is still a sea of red at the moment. Almost $300 billion of market capital has been wiped off in the sector in the last 48 hours, with the sector’s combined value dropping from highs of $2.885 trillion on Monday to $2.581 trillion as of writing.

The prices of many cryptocurrencies, including Bitcoin, tanked in what has been a thorough across-the-board plunge. The flagship crypto erased most of its gains from last week as it retreated from its all-time high zone to around $58,700 on Tuesday before clawing its way back and finding stability around the $60,000 mark where it is currently swinging around.

Market Outlook

Only Tether and USD Coin traded in the green as of Wednesday 01:45 UTC, according to data from coinmarketcap.

The world’s leading cryptocurrency has lost about 10% over the last 7 days and is trading at $60,713 – down 2.54% in the last 24 hours. Ether posted a similar pattern, having lost 3.11% over the past 24 hours to settle at $4,222. The native token on the Ethereum blockchain has now shed almost 11% over the last 7-days.

Binance Coin, which sits third among tokens with the highest market value, traded at $590 on Wednesday morning – 5.49% below its closing price on Tuesday. The pattern is the same for Solana, Cardano, and XRP, which have lost 3.81%, 2.54%, and 3.34%. The latter two have double-digit negative 7-day changes at 15.68% and 11.95%, respectively.

Polkadot and Dogecoin also carved a similar path. Polkadot posted one of the biggest 7-day changes among the top 10 cryptocurrencies, having shed 9.37% in that period. The picture is no different for the meme cryptocurrency, which is deep in the red with a negative 12.6% change over the same period. The two have lost 4.35% and 3.85%, respectively over the last 24 hours.

Other tokens outside the scope of the top cryptocurrencies are feeling similar losses. Terra, Litecoin, Chainlink, Bitcoin Cash, TRON, and VeChain have all lost between 6% and 10% in the last 24 hours.

What was the reason behind the pullback early on Tuesday?

Crypto analysts haven’t singled out a specific impetus behind the market crash, but the majority agree recent crypto stance in the Chinese crypto landscape massively contributed to the tumble. China’s state planner revealed yesterday that authorities would press on with crackdown efforts as the government seeks to stamp out the mining of digital assets.

The state planner, the National Development and Reform Commission, maintains that crypto mining consumes a lot of energy and causes environmental pollution, and the activity has no significant contribution to the development of the industry. This is the rationale behind the move to curtail the mining of digital assets.

What is next in the market?

Traders don’t seem to be very worried despite the intense selling pressure and the sharp correction that has since ensued. The two leading cryptocurrencies both fell off their highs but confidence in the tokens to bounce back is high. The general consolation is that the plunge wasn’t token-specific but rather swept across the whole market.

Besides, many crypto holders understand the volatile nature of the crypto sector and, as such, aren’t shocked about the recent price movements. They contend that the latest dip is a breather rather than a prolonged sell-off, with some considering it an entry point into the market. Traders have generally resorted to the cautious wait-and-see approach before making their next move. It remains to be seen how the sector will perform for the rest of the week and whether or not the tokens will shake off the losses soon.

• Bitcoin price slows down the new parabolic recovery slightly above $55,000.
• The 200-day SMA provides Bitcoin with the much-needed support to prevent a correction from wiping the gains to $40,000.

Bitcoin seems to have started another bull cycle following a lengthy battle in June and July to break the barrier at $40,000. Following the selloff from $65,000 in May, BTC explored levels marginally under $30,000 three times before the ongoing rally.

A confirmed break above $42,500 last week allowed bulls to take complete control of the trend and dominated price action during the weekend. At the time, Bitcoin gained traction and brushed shoulders with $45,000 but retreated to $43,000.

The bullish price action continued on Monday; however, Bitcoin only stepped slightly above $46,000, delaying the move to $50,000. Meanwhile, the bellwether cryptocurrency is trading at 45,700 amid a fierce battle between the bulls and the bears.

Is Bitcoin Bullish Outlook To $55,000 Still Intact?

According to the Moving Average Convergence Divergence (MACD) indicator, the prevailing trend favors the bulls. This comes after a sustained bullish signal since July 22. As the 12-day EMA crossed above the 26-day EMA, the odds for breakout increased. With the MACD moving higher above the mean line, Bitcoin’s uptrend is bound to gain traction for gains above $55,000.

At the same time, BTC trades above all the relevant moving averages on the daily chart, including the 50 SMA, the 100 SMA, and the 200 SMA. As long as support at $45,000, highlighted by the 200-day SMA holds, buyers will keep their focus on highs above $50,000. Note that trading above this level could easily bolster Bitcoin to $55,000.

BTC/USD Daily Chart

On the other hand, the Relative Strength Index (RSI) levels at 70. A break into the overbought could allow bulls to push the price higher. However, overbought conditions could quickly flip bearish with Bitcoin starting to correct. As the RSI retreats into the neutral zone, the sellers’ grip on the price will tighten.

About Author

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige