Bitcoin price has reversed off recent lows as renewed speculation from Blackrock to launch an Ethereum based ETF has many investors looking to the cryptocurrency arena for new opportunities. Speculation that BlackRock is exploring an ETF creates optimism that a renewed wave of institutional money could be unleashed into cryptocurrency markets, as major institutions such as BlackRock are only now considering getting involved in cryptocurrency trading.
As investors speculate on what form an Ethereum ETF could take, several key levels in the Bitcoin price chart are being closely monitored. Firstly, the Bitcoin price is trading in a short term bearish trend, however there is support at the $12,800 level which could provide a major turning point for the BTCUSD.
The $14,000 region also provides an important resistance level that must be broken if the bulls wish to make a new high for the year. A break of this level would add credence to a potential new wave of buying from institutions as the BlackRock plan takes shape.
On the other hand, if the price fails to break either of these support/resistance levels then a further decline may be on the cards as bearish sentiment returns and momentum fades.
Overall, the BlackRock ETF speculation coupled with strong Bitcoin fundamentals could provide the catalyst for a directional move in the BTCUSD. As such, traders will now be firmly looking at upcoming news to decide which way the market will break.
