Bitcoin is set to record one of its best weekly performances in the year, rebounding strongly from its recent lows to post a fresh two-month high of $30,772 before paring some gains. This exponential advance comes on the back of a surge in instructional interest after several Wall Street giants filed for Bitcoin ETFapplications. However, uncertainty could remain high as long as regulators have not yet taken a clear stance over the future of these financial instruments.
Wall Street boosts cryptos
Undoubtedly, this has been a very good week for cryptocurrency markets, with Bitcoin gaining around 13% and jumping above its $30,000 psychological mark to a fresh two-month high. This latest surge comes during a period where stock markets have been flat, indicating once more that cryptocurrencies have decoupled from equities and each asset class is mainly driven by idiosyncratic factors and not by the macroeconomic conditions.
Good news emerged during the end of last week, when BlackRock announced that it has taken initial steps to launch the first spot-Bitcoin ETF in the US. On a similar note, several renowned financial institutions such as TradFi, Invesco and WisdomTree followed BlackRock’s suit, filing applications for spot Bitcoin ETFs and waiting SEC’s approval. Meanwhile, on Tuesday, a new crypto exchange called EDX, which is backed by Fidelity Digital assets, Charles Schwab and Citadel Securities announced that it had begun its operations some weeks ago.
It is clear that with big names like BlackRock and Fidelity engaging and committing to crypto projects, investor sentiment is improving towards the sector, which has been characterized by a series of systemic failures and frauds. This is also evident in the famous Bitcoin Fear and Greed index, which rose to 65 its highest level since April 17. However, it is still too early for the bulls to get excited.
All eyes on regulators
The magnitude of this latest rally is probably attributed to the fact that the institutional aid came at a period when regulatory crackdown had peaked in the US following SEC’s charges against Binance and Coinbase. Nevertheless, the SEC repeatedly rejected several applications for ETFs that would track Bitcoin prices so far due to potential manipulation and market inefficiency risks that rattle the crypto space. Will this time be any different?
Bitcoin pierces through descending trendline
Taking a technical look, we can observe that BTCUSD has posted significant gains in the past few daily sessions, breaking above the downwards sloping trendline that connected its lower highs since April 14. In addition, the king of cryptos managed to reclaim the $30,000 psychological mark and record a fresh two-month high of $30,772.To the upside, bullish actions could propel the price towards the 2023 peak of $31,064 before the June 2022 resistance of $32,375 comes under examination.
Alternativity, if the price reverses downwards, the previous resistance of $28,460 could now serve as initial support. Diving lower, the bears might aim for the $26,480 support territory.
Bitcoin is set to record one of its best weekly performances in the year, rebounding strongly from its recent lows to post a fresh two-month high of $30,772 before paring some gains. This exponential advance comes on the back of a surge in instructional interest after several Wall Street giants filed for Bitcoin ETF applications. However, uncertainty could remain high as long as regulators have not yet taken a clear stance over the future of these financial instruments.
Wall Street boosts cryptos
Undoubtedly, this has been a very good week for cryptocurrency markets, with Bitcoin gaining around 13% and jumping above its $30,000 psychological mark to a fresh two-month high. This latest surge comes during a period where stock markets have been flat, indicating once more that cryptocurrencies have decoupled from equities and each asset class is mainly driven by idiosyncratic factors and not by the macroeconomic conditions.
Good news emerged during the end of last week, when BlackRock announced that it has taken initial steps to launch the first spot-Bitcoin ETF in the US. On a similar note, several renowned financial institutions such as TradFi, Invesco and WisdomTree followed BlackRock’s suit, filing applications for spot Bitcoin ETFs and waiting SEC’s approval. Meanwhile, on Tuesday, a new crypto exchange called EDX, which is backed by Fidelity Digital assets, Charles Schwab and Citadel Securities announced that it had begun its operations some weeks ago.
It is clear that with big names like BlackRock and Fidelity engaging and committing to crypto projects, investor sentiment is improving towards the sector, which has been characterized by a series of systemic failures and frauds. This is also evident in the famous Bitcoin Fear and Greed index, which rose to 65 its highest level since April 17. However, it is still too early for the bulls to get excited.
All eyes on regulators
The magnitude of this latest rally is probably attributed to the fact that the institutional aid came at a period when regulatory crackdown had peaked in the US following SEC’s charges against Binance and Coinbase. Nevertheless, the SEC repeatedly rejected several applications for ETFs that would track Bitcoin prices so far due to potential manipulation and market inefficiency risks that rattle the crypto space. Will this time be any different?
Bitcoin pierces through descending trendline
Taking a technical look, we can observe that BTCUSD has posted significant gains in the past few daily sessions, breaking above the downwards sloping trendline that connected its lower highs since April 14. In addition, the king of cryptos managed to reclaim the $30,000 psychological mark and record a fresh two-month high of $30,772.
To the upside, bullish actions could propel the price towards the 2023 peak of $31,064 before the June 2022 resistance of $32,375 comes under examination.
Alternativity, if the price reverses downwards, the previous resistance of $28,460 could now serve as initial support. Diving lower, the bears might aim for the $26,480 support territory.
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