The Bitcoin price has been in a tight range recently as investors ponder on the next move for the currency. The coin is trading at $61,900, which is slightly below last week’s high of more than $66,000. The Bitcoin fear and greed index has moved from the extreme greed level of 78 to the current 72.
Concerns about Bitcoin ETF
The Bitcoin price has jumped sharply in the past few weeks as investors reflect on the success of the new ProShares Bitcoin ETF (BITO). In the past few days, the fund has seen its inflows jump to more than $1 billion.
However, there are some reasons for concerns. For one, the fund does not own Bitcoin itself. Instead, it owns Bitcoin futures that are owned by CME Group. Therefore, there is a likelihood that the correlation between BTC and the fund will be limited.
BITO made the cover of Barron’s magazine during the weekend. The article written by Daren Fonda and Avi Salzman asked investors to trend carefully when investing in the Bitcoin ETF. It compared it to the relationship between the price of crude oil and ETFs that track the futures contracts.
Meanwhile, the closely watched Bitcoin fear and greed index has moved from the extreme level of 78 where it was last week to 72. This means that investors are getting less greedy. This decline coincided with the fact that the price has dropped by about 8% from its highest level last week.
The Bitcoin price will likely react to the latest earnings by big technology companies scheduled for this week. Companies like Facebook, Google, and Microsoft are expected to publish their results. And there is a likelihood that some of them will talk about cryptocurrencies. For example, Facebook could talk about the currency since it is testing its cryptocurrencies wallet.
Bitcoin price prediction
The daily chart shows that the BTC price has been in a strong bullish trend. Indeed, the price has risen by more than 113% from its lowest level in July. The price is slightly below the key resistance level at 64,843, which was the previous all-time high.
It has also moved above the 25-day and 50-day moving averages while the money flow index (MFI) has moved from the overbought level. Therefore, the Bitcoin price will remain in a bullish trend as long as it is above the two moving averages. The next key level to watch will be at $70,000.
