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Bitcoin price finally pushed through resistance at $27,000 following last week’s correction below $25,000. The largest cryptocurrency’s Tuesday climb seemed unstoppable as it blasted through the next resistance at $28,000.
The price breached a subsequent hurdle at $29,000 but has retreated to trade at $28,743 as investors usher in the European session. Prominent analysts like Michaël van de Poppe have attributed the sudden bullish outlook to Blackrock’s intended debut into the crypto industry.
Blackrock, a global behemoth spanning many industries, filed an application with the Securities and Exchange Commission (SEC) for a spot Bitcoin exchange-traded fund (ETF).
#Bitcoin shows some interesting structures.
Held above the 200-Week EMA and bounced firmly from that area.
Secondly, previous resistance becomes support, through which a new rally can start.
Coming weeks we’ll see, but another rally to $38K is on the cards. pic.twitter.com/q0RxP20wbl
— Michaël van de Poppe (@CryptoMichNL) June 20, 2023
Optimism has been building around this particular application, despite the SEC having rejected many similar proposals in the past. The move also serves as validation of the crypto market to institutional investors, many of whom have since the application expressed interest in the market.
Bitcoin Price Approaches $30,000 As Fidelity-Backed EDX Markets Begins Operations
In an interesting turn of events, Fidelity Investments in collaboration with Citadel Securities, has launched a cryptocurrency exchange dubbed EDX Markets.
Although the time of this launch is suspect, just after Blackrock’s ETF announcement, it hopes to serve brokers and investors piquing interest in the crypto market but wish to stay clear of troubles that whisked FTX out of business in November.
According to a related report by the Wall Street Journal, EDX Markets started carrying out transactions in the past few weeks – in a rather subtle manner. The project announced nine months ago, finally confirmed its official launch through a statement issued on Tuesday.
This initiation indicates that a segment of Wall Street institutions still maintains their crypto interest. This holds despite the substantial regulatory pressure exerted by the SEC and a crypto market that has seen a significant slowdown in the past year and a half.
Meanwhile, Bitcoin price reacted positively to the news, confirming the breakout discussed in our previous analysis. Long positions in BTC, triggered slightly above the bullish pennant pattern, or the 50-day Exponential Moving Average (EMA) around $27,000, immediately turned profitable as the largest crypto closed the gap to $29,000.
Is This The Beginning of a Bull Market?
The cryptocurrency market has been stuck in a downward spiral for more than one and a half years. While there have been many recovery attempts, like the aggressive Bitcoin price rally to highs marginally above $31,000 in April, market conditions have generally remained depressed.
However, with the upswing to $29,000, Bitcoin price may finally shun the downtrend and usher in a bullish era with gains above $30,000. Notably, the Moving Average Convergence Divergence (MACD) indicator has validated a buy signal on the same daily chart.
For now, it would be prudent to wait for the Bitcoin price to confirm support at $28,000 or a breakout above $29,000 before triggering new long positions. This will help avoid sudden pullbacks which may culminate in losses.
If support at $28,000 is lost, investors may start acclimating to a sharp drop to the next support at $27,000. However, it is not advisable to strongly short Bitcoin, considering the emergence of institutional investors like Blackrock, Fidelity Investments, and Citadel Securities.
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