SEC likely to approve Bitcoin ETFs
Investor sentiment has improved slightly this trading week. Bitcoin (BTC) surged past the $30,000 level, and other crypto assets are starting to regain their strength. Some analysts point out that Bitcoin’s open interest is at its highest level since the FTX collapse, which can be attributed to a mix of macroeconomic and crypto-specific factors.
Philadelphia Fed President Patrick Harker stated this week that the Federal Reserve might be nearing the end of its current rate-hiking cycle, which historically has been beneficial for riskier assets like cryptocurrencies. Simultaneously, speculation around the approval of the first Bitcoin ETF in the U.S. is growing, and according to Galaxy Digital CEO Mike Novogratz, approval may be imminent.
Based on his sources from BlackRock and Invesco, Mike Novogratz believes that the U.S. Securities and Exchange Commission (SEC) will likely approve Bitcoin ETFs within the next four to six months.
“Our contacts from both Invesco and BlackRock suggest that it’s a matter of when, not if. The window for approval is likely within the next six months. The Spot Bitcoin ETF application by BlackRock, the largest asset manager, has generated positive sentiment among institutional investors toward Bitcoin.”
– Galaxy Digital CEO, Mike Novogratz
Bitcoin whales opened long positions at $29k
The potential SEC approval of Bitcoin ETFs would significantly drive demand for Bitcoin, thereby boosting the price of Bitcoin and many other cryptocurrencies. Starting early Tuesday, Bitcoin’s price rose by more than 3.5%, surpassing the $30,000 mark for the second time this month. It’s also important to note that Bitcoin whales previously opened massive long positions at $29k.
When whales increase their trading activity, it typically signals increased confidence in the coin’s short-term price prospects. If whales continue to buy Bitcoin in large volumes, we could see a more substantial price increase in the coming weeks.
According to Coinglass data, Bitcoin Open Interest (OI), which measures the total number of unsettled futures, saw a significant spike, increasing by over $1 billion in less than 24 hours. This surge in OI suggests rising interest in Bitcoin, which could lead to further price increases for the flagship cryptocurrency.
Technische analyse voor Bitcoin (BTC)
Since August 01, 2023, Bitcoin (BTC) has risen approximately 6%, moving from $28,477 to a high of $30,222. The current Bitcoin price stands at $29,441, still over 35% below its 2022 highs registered in March. The chart below shows that Bitcoin (BTC) has been in a persistent downtrend since November 2021. Even with the recent jump, Bitcoin is still under pressure when viewed from a broader perspective.
Key support and resistance levels for Bitcoin (BTC)
The chart from February 2023 highlights key support and resistance levels to assist traders in predicting Bitcoin’s price movement. Bitcoin bulls seem to be gaining confidence, and if the price exceeds $32,000, the next target could be the resistance at $34,000.
The critical support level is at $28,000. If the price breaks this level, it could trigger a “SELL” signal, opening the path toward $27,000. Should the price fall below $26,000, another strong support level, the next target could be around $25,000.
Factors supporting the rise in Bitcoin (BTC) price
Bitcoin, which now holds nearly 50% of the crypto market, is trading around 20% higher than its June 15 low of $24,750. If the price surpasses the resistance level of $32,000, the next target could be $34,000.
One key factor behind this surge is the fact that investment firms BlackRock and Invesco have applied to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin ETF. Analysts believe these applications have a good chance of securing approval within the next four to six months.
Indicators suggesting a potential decline for Bitcoin (BTC)
Timothy Peterson, founder and investment manager at Cane Island Alternative Advisors, suggested that despite the recent rise, Bitcoin could easily drop below $25,000 in the coming month. Bitcoin’s crucial support level is at $28,000, and a break below this level might signal a test of the $25,000 support. The volatile nature of cryptocurrencies could cause investors to panic and sell off Bitcoin if negative news emerges in the market, such as BlackRock not getting SEC approval or a prominent crypto firm going bankrupt.
Inzichten van analisten en experts
Bitcoin (BTC) has surpassed the $30,000 mark again this week, reaching an intraday high of $30,222. The big question remains: Does it have enough bullish momentum to continue rising? This depends on both technical and fundamental factors.
Speculation surrounding the potential approval of the first Bitcoin ETF in the U.S. is undoubtedly positive news for Bitcoin. According to Galaxy Digital CEO Mike Novogratz, approval might be imminent, with the SEC likely to approve Bitcoin ETFs within the next four to six months.
The increased trading volume demonstrates renewed confidence in Bitcoin, and many expect institutional investors to increase their Bitcoin purchases in the weeks ahead.
The overall sentiment in the cryptocurrency market is also vital for Bitcoin’s price direction, and the recent U.S. data showing that inflation cooled more than expected in June has boosted investor confidence, suggesting the Fed may halt its rate-hiking plans.
Disclaimer: Cryptocurrencies are highly volatile and not suitable for everyone. Never invest money that you cannot afford to lose. The information provided on this site is for educational purposes only and should not be taken as investment or financial advice.
