Bitcoin stole the crypto spotlight after surpassing the $30,000 mark on Monday, October 16. Market observers attributed this spike to rumors suggesting the United States Securities and Exchange Commission (SEC) had greenlit BlackRock’s Spot Bitcoin ETF.
While the recent price action appears to have led to the formation of a bearish technical pattern on Bitcoin’s daily chart, BlackRock CEO Larry Fink said it is an example of “pent-up interest in crypto.”
Bearish Picture After Bitcoin ETF Rumors
Renowned technical analyst Crypto Capo discerned a pattern on Bitcoin’s daily chart, known as the “head-and-shoulders.” This particular formation, easily identifiable with three peaks where the central peak (the “head”) rises higher than the flanking peaks (the “shoulders”), often signals at a potential market reversal.
Bitcoin’s recent spike to over $30,000 appears to have formed the right shoulder of this technical pattern. Therefore, a potential breach of the $25,000 support level could result in a 20% correction, dragging Bitcoin’s value down to around $20,000 or lower.
“No changes. $19,000-$20,000 should be next. Then $12,000,” the trading veteran said.
Read more: How to Short Bitcoin: A Step-by-Step Guide
However, it is crucial to demystify the catalyst behind Bitcoin’s recent price spike. A recent news update by CoinTelegraph erroneously reported the SEC’s approval of the iShares Spot Bitcoin ETF. Fox Business was quick to debunk this report after reaching out directly to BlackRock. Recognizing the “fake news,” CoinTelegraph soon issued a public apology.
BlackRock Remains Bullish on Crypto
Amid the whirlwind of Bitcoin’s price fluctuation, Larry Fink, the CEO of BlackRock, shared his perspective. Contrary to the prevailing buzz, Fink was not in the loop about the rumors until later on.
Still, Fink emphasized the broader implications of Bitcoin’s popularity, stating that the rally was influenced by many global issues and concerns over global terrorism.
“I cannot talk about the specifics of anything but this is an example of the pent-up interest in crypto and what we hear from clients around the world about the need for crypto. I think some of this rally is way beyond the rumor and I think the rally is about all the issues around Israeli war,” Fink said.
Fink presented a nuanced view of the crypto market, arguing that the rumor did not solely drive the rally. Instead, he identified a pattern where individuals gravitate towards “flight quality” assets during global unrest, whether treasuries, gold, or cryptocurrencies.
“I believe crypto will play that role as a flight to quality,” Fink firmly asserted.
Read more: 7 Ways To Buy Bitcoin and Other Crypto With Apple Pay
In the grand scheme of things, while technical patterns provide valuable insights into possible market trends, they must be weighed against the broader macroeconomic environment. This includes sentiments expressed by influential industry leaders about the growing demand for Bitcoin.
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