Bitcoin Price Slumps as Franklin Templeton Files Crypto Index ETF

Bitcoin price has slipped 0.48%, with the pioneering cryptocurrency trading at $61,028 at press time. Notably, its 24-hour trading volume has plummeted by 18% to $41 billion, suggesting a fall in market activity among traders and investors. BTC is now down 5% in a week; however, it has increased by 2% in a month and by a whopping 120% in a year. 

Meanwhile, major BTC ETFs experienced outflows, keeping the overall net flow heavily negative for the second consecutive day. Bitcoin entities saw approximately $92 million in net outflows.

On the other hand, Franklin Templeton, a trillion-dollar asset manager, has filed for a Bitcoin and Ethereum ETF Index with the Securities and Exchange Commission (SEC). Pending approval, this ETF would be the first to combine BTC and ETH in a single fund. Moreover, this fund will allow investors to get involved in cryptocurrencies without owning the underlying assets.

JUST IN: 🇺🇸 $1.6 trillion Franklin Templeton files for #Bitcoin and Eth Index ETF with SEC. pic.twitter.com/ZE6MCMx0J3

— Bitcoin Magazine (@BitcoinMagazine) October 3, 2024

Bitcoin Statistical Data

Based on CoinmarketCap data: 

• BTC price now – $61,028
• Trading volume (24h) – $41 billion
• Market cap – $1.20 trillion
• Total supply – 19 million
• Circulating supply – 19 million 
• BTC ranking – #1

The Bitcoin price has dropped to $61,028, currently near $60,000. This plunge can be attributed to global issues such as geopolitical events (Israel-Iran war). If no negative statements emerge, the Bitcoin price could recover easily. BTC is currently sitting right around the $61,028 resistance level. This area has shown previous strength, and a breakout above this zone could push BTC toward the next resistance, around $64,083. 

Meanwhile, the BTC price has established solid support at the 200-day Simple Moving Average (SMA), at around $60,301. If this support holds, the BTC price could recover, potentially targeting the next resistance zone at $66,508. However, let’s see how the price reacts at this crucial point. Meanwhile, a breach and a break below $60,000 will trigger heavy selling.

On the other hand, the Relative Strength Index (RSI) is looming in the oversold conditions. Currently, the RSI sits at 38.51, tilting the odds in favor of the sellers. However, if the buyers step in at this level, the RSI could hurtle above the average at 50, potentially entering the overbought zone.

Bitcoin Price Outlook

In the 4-hour chart timeframe above, the Bitcoin price is testing a crucial support level. If the price holds above the $60,301 level, we could see a bullish reversal in the market. This will see the bulls regain momentum as they gear up towards the next technical barrier at $66,508. In a highly bullish case, a break above $66,508 will see the BTC price reclaim the $70,000 mark.

However, a breach below key support at the $60,301 mark might lead to a short-term pullback, potentially testing $58,213. Notably, this may trigger panic selling, which may see the BTC price retest the $53,400, a low last tested on September 6.

Bottom Line

Meanwhile, the Israel-Iran tension is making big investors uneasy. We all know that geopolitical events can sometimes affect the crypto market. However, if the war calms down, the Bitcoin price may experience a recovery. On the upside, the Bitcoin price could clear the $66,508 technical barrier, retesting the $70,000 mark.