The cryptocurrency market outlook has significantly improved over the past few weeks. The leading cryptocurrency, Bitcoin (BTC), albeit not tremendously strong, has risen by 54.4% over the last 30 days, taking its value appreciation since the beginning of the year to 63.5%. Bitcoin’s strong performance in June has continued into this month, with experts pointing to the next target level of $38,000. To reach this target, BTC, which has been seen overcoming the $31,000 resistance, needs to surpass the $32,000 resistance.
As Selling Pressure Decreases, Bitcoin Price Rises
Bitcoin’s price continues to rise on a wave of various buying signals, beginning with the Moving Average Convergence Divergence (MACD) indicator. In June, the blue MACD line crossed over the red signal line, indicating a buy signal. Likewise, the momentum indicator reinforced the bullish outlook by crossing above the average line.
The SuperTrend indicator confirmed a break from $25,000 by moving below the Bitcoin price. Like moving averages, this indicator covers the chart but goes a step further by including readings from the Average True Range (ATR) to measure market volatility. As long as the SuperTrend indicator maintains its position below the price, Bitcoin is expected to stay in the rising trend. Investors can expect the BTC rise to halt and move downwards if the volatility index rises above the price.
Specifically, a daily candle close above the $31,000 level will pave a long way for Bitcoin to sustain its bullish trend. In other words, the conversion of the tough $31,000 resistance level to support could push more investors to buy into BTC. On the other hand, a break above $32,000 will provide a significant bullish signal by demonstrating that the Bitcoin price has finally surpassed two key levels. In such a scenario, the next target levels for the price will be $35,000 and $38,000.
Chain analysis by leading crypto analysis platform Santiment indicates a commendable increase in investor confidence, boosting interest in BTC accumulation. Santiment also warned investors that they have reached a highly profitable point and that this could cause hesitation for some cooling off.
In this respect, it is essential to carefully monitor Bitcoin’s response to the recently reclaimed $31,000 and $32,000 levels. If the price exceeds $32,000, it will change the rules of the game and put $38,000 into play. In a negative scenario, a price drop below $31,000 would signal the bulls’ acceptance of defeat. In this scenario, the bears could increase pressure, potentially pushing BTC below $30,000 with the claim of ultimately driving it to $25,000.
Blackrock Updates Its Application to SEC for a Spot Bitcoin ETF
According to a Bloomberg report, BlackRock has updated and resubmitted its application for a spot Bitcoin Exchange Traded Fund (ETF) through Nasdaq, which was previously turned down by the Securities and Exchange Commission (SEC) for being “inadequate.” In the new application to the SEC on July 3, it was stated that Coinbase would play a significant role in market surveillance for the spot Bitcoin ETF.
Last week, it was noted that asset management firms interested in offering a spot Bitcoin ETF, such as VanEck and Fidelity Investments, updated their applications ahead of Blackrock.
The SEC’s green light to a spot Bitcoin ETF would signify the opening of a significant door for institutional investors’ participation in the crypto market. Leading market analysts and experts believe this will fuel the next bull market.