The crypto market is up today as traders assess its oversold levels and the prospects of the SEC approving the first Bitcoin ETF. With the crypto market’s capitalization growing by over 2% to $1.05 trillion, up nearly 7.5% from the $975.25 billion low seen two days ago, assets such as BTC and ETH experienced rebounds of 8.5% and 9%, respectively. The market cap started recovering a day after its daily relative strength index’s (RSI) reading fell almost to 30, indicating its nearly “oversold.” From a technical perspective, an oversold RSI prompts a price recovery or consolidation.
In addition to the technical bounce, growing speculations around the first Bitcoin ETF approval in the U.S. helped the crypto market bounce. Notably, BlackRock, an investment firm managing $9.5 trillion in assets, applied to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin ETF on July 16. Throughout its history, the company has applied for 576 ETFs, facing only one rejection. The crypto market has risen 4.5% since the BlackRock application, with market analyst Lark Davis predicting an SEC approval could have the asset manager purchase every single Bitcoin available across crypto exchanges.
From a technical perspective, the crypto market has ranged inside what appears to be a bull flag pattern since April 2023, which raises its prospects of continuing its recovery trend toward $1.37 trillion into the second half of 2023 — up 35% from current valuations. Conversely, bears will attempt to push the market cap below the bull flag’s lower trendline, risking invalidating the bullish setup altogether. In this bearish scenario, the crypto market would drop toward the next major support at $875.50 billion, an important level from the June-November 2022 and March 2023 sessions.
Source: Cointelegraph
