Bitcoin price has shown remarkable progress, surpassing key resistance levels at $28,000 and $30,000. This surge comes as optimism grows regarding the potential approval of a spot Bitcoin ETF in the United States.
Bitcoin price is approaching its highest levels of 2023, benefiting from an overall improvement in market sentiment. The past few weeks have been eventful, as Bitcoin initially dipped below $25,000 but quickly rebounded to reach $30,820.
Investors were disappointed by recent comments from Jerome Powell, the Chair of the US Federal Reserve. Powell announced a pause in the ongoing interest rate hikes, marking the first break since March 2022. He also mentioned that the bank is leaning towards a more cautious and observant approach.
This suggests that there might be more increases in interest rates as the ongoing effort to reduce inflation to 2% continues. Initially, investors in assets like Bitcoin and cryptocurrencies were disheartened by these comments. However, they eventually began to understand the positive short-term outlook resulting from the decision to pause the rate hikes.
Bitcoin Surges Beyond $30,000 as Wall Street Embraces Crypto:
The global business giant Blackrock made headlines last week by filing for a spot Bitcoin exchange-traded fund (ETF), a move that took the world by surprise. This announcement sparked a wave of interest from other Wall Street firms, as they too began exploring opportunities in the cryptocurrency industry.
Among them, Fidelity Investments joined forces with Charles Schwab, Citadel Securities, Fidelity Digital AssetsSM, Paradigm, Sequoia Capital, and Virtu Financial to launch EDX Markets, an innovative crypto exchange designed to cater to the needs of brokers and investors in the digital asset space.
Valkyrie Funds, a company that currently manages a Bitcoin Strategy ETF and a Bitcoin Miners ETF, has submitted a proposal to the Securities and Exchange Commission (SEC) for the establishment of a spot Bitcoin exchange-traded fund.
The proposed ETF, named the Valkyrie Bitcoin Fund, aims to hold bitcoin and track the performance of the CME CF Bitcoin Reference Rate, New York Variant. If approved, the fund plans to list its shares on the Nasdaq exchange under the ticker symbol BRRR.
This development reflects the growing interest in providing investors with regulated access to the cryptocurrency market.
Despite the ongoing interest and filings from various companies, the Securities and Exchange Commission (SEC) has yet to approve a spot Bitcoin exchange-traded fund (ETF).
WisdomTree, Invesco, and BlackRock have recently submitted their own filings for spot Bitcoin funds, adding to the growing anticipation for a potential approval. This optimism has contributed to the significant progress in Bitcoin’s price, surpassing key resistance levels at $28,000 and $30,000. Analyzing the daily chart, the upward movement, which has encountered some resistance around the $31,000 mark, has been supported by increased participation from both retail investors and large-scale crypto holders.
The market continues to monitor the regulatory landscape for further developments regarding the introduction of a spot Bitcoin ETF in the United States.
BTC/USD daily chart | Tradingview
Bitcoin Price Seeks Consolidation Before Extending Breakout:
As Bitcoin surpassed the $30,000 mark, it encountered strong resistance around $31,000. This suggests that there may be a period of consolidation between the price range of $29,000 and $31,000. However, a significant drop in price is unlikely due to the positive market sentiment and increasing interest in Bitcoin from both individual and institutional investors.
According to Michaël van de Poppe, a well-known analyst and trader, Bitcoin dominance is nearing a point of resistance. This could lead to a consolidation phase for Bitcoin’s price. At the same time, it would provide a period of relief for altcoins, allowing them to gain momentum. Van de Poppe shared his insights on Twitter, suggesting that this trend is likely to unfold.
Investors should closely monitor the movement of Bitcoin’s price as it tests the support level at $29,000 and the resistance level at $31,000. If Bitcoin breaks above $31,000, it could signal a confirmation for the next upward rally towards $38,000.
However, if the price slides below $29,000, it could weaken the support at $28,000 and potentially lead to a larger decline towards $25,000. It’s important for investors to be vigilant and consider these key price levels in their decision-making.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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