Bitcoin price has opened the new week defending support at $30,000. While attempts to trend higher have been many over the last couple of weeks, shrinking volumes on exchanges may be depriving bulls of the momentum to sustain these northbound price movements.
Currently lethargic, the crypto market cap is down 0.7% to $1.21 trillion, with Bitcoin accounting for the biggest share at $584 billion. The largest coin is down 0.6% to $30,085, while Ethereum is trading at $1,855, down 0.6% on the day.
Bitcoin spot exchange-traded fund (ETF) applications have been the main discussion in the cryptosphere since June. Analysts believe that a spot BTC ETF is the only thing the market cares about, especially with Blackrock joining the race.
However, analysts are divided over the impact of a spot Bitcoin ETF on the crypto industry. Some believe the product will pave the way for institutional investors to gain exposure to Bitcoin. The increased uptake of BTC could be the missing puzzle piece ahead of the much-awaited bull market, keeping in mind the four-year halving cycle in 2024.
“So-called mainstream adoption will bring waves of new entrants to Bitcoin, and the risk is that they won’t care and won’t protect the decentralization properties that make it valuable over centralized alternatives in the first place,” Alex Thorn, head of research at Galaxy, said in a written note to CoinDesk.
Meanwhile, the SEC has already expressed dissatisfaction with the ETF applications, saying that they are inadequate. This compelled Blackrock to resubmit its proposal via Nasdaq last week.
“In a largely uneventful week, we saw bitcoin trending downward to test support levels near $30K,” BitBull Capital’s Joe DiPasquale said in a written statement. “However, the market leader managed to defend the key level despite news of the SEC calling ETF filings inadequate.”
Bitcoin price must reclaim the most stubborn support/resistance at $31,000 to validate the uptrend. According to the crypto trader/analyst Captain Faibik “Bitcoin bulls must clear this resistance to regain bullish momentum and confirm a breakout from descending channel on a macro scale.”
Faibik told his more than 62k followers on Twitter that “If Bitcoin continues to remain below 31k S/R level, I anticipate that it may potentially retest the 20k region in late August.”
However, DiPasquale opines that if Bitcoin “continued trading above $30k, will see more attempts to go higher.” He added. “Meanwhile, $27K remains a strong support for now.”
On the upside, a descending channel marks the resistance at $31,000 and must come out of the way to validate the trend continuation. If bulls clear this hurdle successfully, investors can start to acclimatize to an approximately 20% breakout in August.
Although Bitcoin has a long-term bullish outlook of $48,000, it might first tag highs around $38,000, followed by a retracement to $35,000 before the ultimate rally expected by the end of 2023.
On the other hand, support at $30,000 remains crucial for the resumption of the uptrend. However, if it weakens, Bitcoin price may roll back to $27,000 – its strongest support. Captain Faibik believes Bitcoin might drop to $20,000 before the crypto market settles in for the bull run to $48,000.
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