Fresh Bitcoin ETF hopes back BTC’s swift rally above $40,000

Hopes of an eventual BTC ETF approval and the rebound of a key support level pushed Bitcoin price well above the $40,000 level, but can the bulls sustain the current volume?

Crypto investors are seeing gains in Ether (ETH) and Bitcoin (BTC) on Aug. 5 after the successful launch of Ethereum's London hard fork and a series of new Bitcoin exchange-traded fund filings, resulting in a rally that propelled BTC's price 9% higher and caused Ether to gain 11.75%, which pushed the altcoin closer to the elusive $3,000 level.

Data from Cointelegraph Markets Pro and TradingView shows that after an early morning sell-off that saw BTC fall to $37,280, the bulls stepped in, and the ensuing high volume spike sent BTC price to an intraday high of $40,775.

BTC/USDT 4-hour chart. Source: TradingView

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

Related: Fed governor says CBDCs remain 'a solution in search of a problem'

Regarding the current bullish price action, analyst Will Clemente posted the following chart to show BTC's past performance and opined that "This would be a key level ($54k and rising) to watch for confirmation/rejection (2013 vs. 2017 reaction)."

Top/bottom models for Bitcoin. Source: Glassnode

Clemente added:

“In my opinion, this would be a key level ($54K & rising) to watch for confirmation/rejection. (2013 vs. 2017 reaction)”

The overall cryptocurrency market cap now stands at $1.662 trillion, and Bitcoin’s dominance rate is 45.6%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Publication date: 
08/05/2021 - 18:23
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.