Bitcoin steadies above $30k, institutional interest fanning demand
Bitcoin has crossed the $30,000 threshold, fanned by growing institutional interest and favorable technical indicators. The potential approval of bitcoin spot exchange-traded funds (ETFs) is also being considered. Nonetheless, what lies ahead for this widely-used cryptocurrency remains to be seen.
Bitcoin (BTC), the biggest cryptocurrency in the world, has risen above the $30,000 mark once again. This is noteworthy as BTC last reached this level back in April.
There has been a recent resurgence in the crypto market due to increased interest from institutional investors and recent developments, such as the filing of Bitcoin ETFs. The launch of a crypto exchange backed by Wall Street has also helped create positive momentum.
Bitcoin’s break from tech stocks
BTC appears to be charting a different course, deviating from the usual trend of risk assets like tech stocks.
Over the past seven days, BTC rallied 18% and is currently trading at $30,173 as of June 23. In contrast, the NASDAQ composite dropped by over 1% during the same timeframe.
Bitcoin could experience a significant boost if an ETF is approved. The SEC has been hesitant to approve a Bitcoin ETF, but BlackRock, Invesco, and WisdomTree are challenging this resistance. They have presented applications that include measures to prevent market manipulation.
If these applications are approved, there could be a surge in institutional adoption of Bitcoin, leading to a substantial increase in its value.
Analysts are bullish but cautious
Crypto analysts on Twitter are divided amidst the surge. Crypto Rover has set an optimistic price target of $52,000, reflecting a bullish outlook on the market.
Meanwhile, CryptoCon took a more cautious approach, suggesting a target of $38,000, signaling a potentially gradual price increase.
Stockmoney Lizards anticipates a potential pre-halving target of $48,000 by April 2024.
Moreover, with this rebound, bitcoin appears to be nearing a golden cross event – a bullish market trend marked by the 50-day moving average crossing above the 200-day moving average.
This prediction contrasts sharply with the death cross witnessed in September 2022, which led to the FTX crash.
Eyes on the BTC weekly chart
While the market seems firm and heading upward, traders and analysts advise caution. A crypto analyst, Rekt Capital believes that bitcoin’s recent breakout is a good sign. However, it must maintain a position above $27,500 for the upward trend to continue.
Bitcoin’s weekly performance is being closely watched to confirm the sustainability of its recent breakout. Its ability to maintain $30,000 and the possibility of an ETF approval will greatly affect its future direction.