Could the Hong Kong Bitcoin (BTC) ETF Approval Help Reclaim $70,000?
The price of Bitcoin is showing signs of recovery as the world’s largest cryptocurrency is gaining acceptance in Hong Kong. The country approved spot Bitcoin and spot Ethereum ETF applications on April 15, becoming the second region in the world after the United States. Given the magnitude of the event, the approval will boost a potential recovery. Hong Kong is one of the countries leading in adoption, which is a bullish event for Bitcoin. The arrival of a Bitcoin ETF in the Hong Kong market could boost accumulation among investors. Institutions have been bullish on BTC, as indicated by the ETF’s consistent inflows exceeding outflows. The same potential can be seen on the Reserve Risk indicator. The indicator measures the confidence of long-term Bitcoin holders by assessing the price-to-holders ratio, indicating potential selling or buying pressure based on past accumulation patterns.
Given that the indicator is in the green zone, investor confidence is high, which makes Bitcoin an attractive asset in terms of risk/reward. Therefore, accumulation could be the preferred move for investors going forward. This could mean a faster recovery in the price of Bitcoin. The price of Bitcoin has been mostly consolidating between the $71,800 and $63,700 range. Testing them as both resistance and support over the past month and a half has solidified their role as barriers. This makes breaking through them challenging, although with the news of Hong Kong ETF approval and the upcoming halving, Bitcoin may have received the necessary impetus to break out.
As a result, Bitcoin’s price would rise by 8.29%, taking BTC to a new all-time high. However, if consolidation regains strength and an eventual test of the $63,700 support level fails, Bitcoin’s price could fall to test the $61,800 support level. Losing this level would invalidate the bullish thesis and cause the price to fall further.
