Coin Edition -
- People are starting to price in a positive outcome for the spot Bitcoin ETF awaiting approval, according to Anthony Rousseau.
- Bitcoin experienced renewed volatility in the past week.
- BTC established a new yearly high of $35,198 on Tuesday, October 24.
According to Head of Brokerage Solutions at TradeStation, Anthony Rousseau, people are starting to price in a positive outcome for the spot Bitcoin ETF awaiting approval. Rousseau said this in an exclusive discussion with Coin Edition over the recent volatility in the Bitcoin market.
Bitcoin experienced renewed volatility in the past week following a false report about approving a spot Bitcoin ETF. The price surged significantly, breaking above multiple resistances, and rose to a new yearly high of $35,198 on Tuesday, October 24. Following the rally, BTC appears to be consolidating, as the price movement has slowed in the last 48 hours and market indicators suggest that Bitcoin is currently overbought.
In a recent article, Coin Edition showed that Bitcoin is in “Extreme Greed” per the Fear and Greed Index, and users suggest that the price might drop significantly. Analyzing the situation, Rousseau noted that Bitcoin’s latest surge results from various fundamental and market conditions that have aligned. However, he believes a market liquidity event from a macro perspective is always possible and has a probability of having negative implications for risky assets, including Bitcoin.
According to the brokerage expert, there could be a possibility for a downward movement back to the range Bitcoin was trading earlier this year at $25,000 to $30,000. But with the current market outlook and anticipation for the Spot ETF, Rousseau thought the probability outside of a market shocking event for a move below $30k in the near term was less as prices continued to push higher.
Furthermore, TradeStation’s head of brokerage noted that if a spot ETF gets approved this year, prices could continue higher while the market awaits that outcome and possibly establish a local top on the news.
Still, on the topic, James Koutoulas, co-founder of the Commodity Customer Coalition, told Coin Edition that it would take a significant negative catalyst to reverse the current Bitcoin rally. According to him, given the U.S. Securities and Exchange Commission’s (SEC) continuous losing streak in crucial litigation such as Ripple and Grayscale, it is only a top security issue at Coinbase (NASDAQ:COIN) or a significant court win by the SEC that could trigger a price trend reversal for Bitcoin.
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