NOIDA (CoinChapter.com)—Bitcoin (BTC) ‘s price continued its recent bull run to a new all-time high near $72,850 on March 11. The prime crypto’s regulatory acceptance played a key role in fueling its bull run.
In an email to CoinChapter, digital asset investment fund ARK36 founder Mikkel Morch noted that the launch of spot Bitcoin ETFs in the US helped kickstart the BTC price’s recent rally, stating that these investment products lent some regulatory clarity to the otherwise legally obscure sector.
The UK’s Financial Conduct Authority (FCA) announced a major move on March 11 to allow the trading of Bitcoin and Ethereum Exchange Traded Notes (ETNs) on major exchanges.
The Financial Conduct Authority announced that it would accept applications to list Bitcoin and Etheruem linked notes on the London Stock Exchange from April. The decision paves the way for professional investors to gain regulated exposure to these cryptocurrencies.
ETFs are baskets of assets mirroring an index. A user can buy a share of the basket, owning assets directly, while ETNs are bank-issued debts, promising market performance-linked returns.
Morch noted that the surge in BTC prices coincided with UK FCA’s decision. While it may not be the sole cue fueling Bitcoin’s rally, it is very possible that the news coming out of the UK had a bullish impact on BTC.
It seems that the UK could finally be poised to catch up with the rest of Europe, the Middle East, and the USA in embracing digital assets. This significant regulatory shift not only reflects London’s intention to remain a key player in the financial world but also signals a broader acceptance and institutionalisation of cryptocurrencies.
Mikkel Morch told CoinChapter.
Furthermore, the ARK36 founder highlighted the upcoming Bitcoin halving event as another major catalyst that could help continue the BTC price rally. Morch’s outlook on Bitcoin price action was generally bullish, especially due to the token’s regulatory acceptance, noting
The confluence of regulatory acceptance, the halving event, and the influence of spot BTC ETFs could herald a new era of growth and mainstream adoption for cryptocurrencies.
Meanwhile, BTC price did not face much bearish pressure after forming its recent ATH on March 11, suggesting that traders remain positive on the token’s future. The regulatory acceptance news coming from UK helped Bitcoin price rally over 5.5% from the day’s low near $69,000 on March 11.
However, if profit booking starts, BTC price could drop to the 20-day EMA (red wave) support near $62,300. Breaching the immediate support might force Bitcoin to test the support near $53,500.
Conversely, a continued rally could find Bitcoin targeting the 0.618 Fib resistance near $76,000. Breaking and consolidating above the immediate resistance might help BTC price rally to the resistance near $85,700 before correcting.
The RSI for BTC remained overbought, with a score of 76.16 on the daily charts.
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