Bitcoin (CRYPTO: BTC) rose more than 2% in the 24-hour trading session on Wednesday, attempting to bounce off Tuesday's highs amid growing optimism that the SEC will approve a Bitcoin spot ETF.
In recent days, the leading cryptocurrency's rally has helped push Coinbase Global, Inc. (NASDAQ: COIN) to the north. The cryptocurrency exchange has risen more than 10% since Oct. 19 and appeared to be consolidating on below-average volume on Wednesday.
A rally in Coinbase, as well as some gains in Tesla shares, helped lift the Cathie Wood -led ARK Innovation ETF (NYSE: ARKK) on Monday and Tuesday.
If a spot Bitcoin ETF is approved or before this potential event, Bitcoin could continue to rise, which could continue to support ARKK.
Traders and investors looking to invest in ARKK for the long term can play the AXS 2x Innovation ETF (NASDAQ: TARK).
TARK is an actively managed 2X leveraged ETF that aims to return 200% of ARKK's daily returns.
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Bitcoin Chart: Bitcoin is trading as an inside bar, with Wednesday's price action occurring within Tuesday's trading range. In this case, the trend is bullish as Bitcoin rose 10% on Monday, confirming that its strong uptrend continues.
Bitcoin's last trending high was $35,157 on Tuesday, and the most recent was $28,122 on October 19, when the cryptocurrency began its rally after retesting the 200-day simple moving average. Since Bitcoin has not reached a new six-day low, a possible pullback is the likely scenario.
A possible pullback or at least a sideways trade is also possible as Bitcoin's Relative Strength Index (RSI) is at 87%. When a stock or cryptocurrency's RSI value reaches or exceeds 70%, it is overbought, which can be a sell signal.
Bitcoin has upper resistance at $35,593 and $38,105 and lower support at $31,862 and $31,418.
Read more: Sam Bankman-Fried will testify in court: The cryptocurrency market holds its breath