- The ProShares Bitcoin Strategy ETF is sitting at a key resistance level.
- It has outperformed Invesco QQQ and SPDR S&P 500 ETFs.
- The BTC Futures ETF could soon jump by about 20%.
Bitcoin price is sitting at an important resistance level after having a remarkable comeback this year. It was trading at $30,239 on Wednesday, bringing the year-to-date gains to 81%. This means that it has beaten popular financial assets. For example, it has outperformed gold, which has barely moved this year.
Bitcoin price has also outperformed the Invesco QQQ ETF, which tracks the Nasdaq 100 index. The fund has jumped by more than 30%. Similarly, Bitcoin has beaten the SPDR S&P 500, which has risen by less than 50%. In line with this the Proshares Bitcoin Strategy ETF (BITO) has jumped by over 80% as it added inflows in five of the past six months.
Bitcoin resiliency continues
Bitcoin’s outperformance is also reflected on the overall market cap of all cryptocurrencies in the industry. Data compiled by CoinMarketCap shows that all digital coins have a market cap of over $1.14 trillion, making it a major asset class. Bitcoin itself has a market cap of more than $550 billion. If it was a company, Bitcoin would be the 9th biggest firm in the world.
Bitcoin’s performance is also surprising because of the challenges the industry has gone through in the past few months. In May last year, the industry saw its first major headwind when Terra and its ecosystem collapsed. Investors lost over $40 billion after the collapse. It also triggered a major meltdown that led to the collapse of Three Arrow Capital and Circle.
The biggest major event happened in November when FTX collapsed. At its peak, FTX was the second-biggest crypto exchange in the world with a market cap of over $30 billion. It had billions in customer funds. Also, it had made huge investments in the crypto industry. During its collapse, there were concerns about whether the crypto industry would survive.
The most recent headwind in the crypto industry was the SEC lawsuits on Binance and Coinbase, the biggest companies in the industry. While these lawsuits have major implications in the industry, they don’t have an impact on Bitcoin.
BITO ETF technical analysis
The daily chart shows that the BITO ETF is on the cusp of a major bullish breakout. The ETF is trading at $17, which is a few points below the highest level this year. It has also moved above the 50-day and 100-day moving averages.
Most importantly, the fund has formed a bullish pennant pattern, which is usually a bullish sign. Therefore, there is a likelihood that the ProShares Bitcoin Strategy Fund will continue rising as buyers target the next key resistance point at $20, about 20% above the current level. Invesco QQQ and SPY ETFs will likely continue rising.
