The recent recovery in Bitcoin price from a dip below $25,000 last week has generated much interest among crypto enthusiasts. Despite negative market sentiments, the largest cryptocurrency has reached $27,200 for the first time since June 7, marking a 2% spike within 24 hours. The current market dynamics project a bullish outlook for Bitcoin, with the potential to push beyond $28,000, thereby bringing the psychological $30,000 hurdle within reach.
A significant factor supporting this bullish trend is Blackrock’s bid to launch a spot Bitcoin exchange-traded fund (ETF), which has garnered attention from market participants who believe Blackrock has a higher chance of receiving approval for its ETF. Such an offering has eluded several companies, including Grayscale, who is presently entangled in a lawsuit with the US Securities and Exchange Commission (SEC).
Enthusiasts, including prominent industry figure Michaël van de Poppe, argue that institutional investors will usher in the next bull market. In this context, Blackrock’s interest in a Bitcoin spot ETF is seen as paving the way for more institutional investors to enter the crypto market. Fidelity is another major player reportedly considering applying for a spot BTC ETF.
While the Bitcoin price seems bullish, some experts argue that it remains vulnerable. Craig Erlam, a Senior Market Analyst at OANDA, stated in a recent commentary to CoinDesk that the two-month trend isn’t in Bitcoin’s favor, and the news flow isn’t helping the situation. He added that while Bitcoin has had a remarkable year and remains more than 50% higher, it still appears vulnerable to further declines.
On the other hand, short-term bullish opportunities can be explored in Bitcoin price. A pennant pattern formed after the correction from April highs marginally above $31,000 and the support at $24,775 suggests that a breakout could be imminent. However, bulls must successfully overcome short-term resistance at $27,000 to validate the impending move.
It’s noteworthy that Bitcoin price has recovered to sit on top of all the applied moving averages, such as the 200-day Exponential Moving Average (EMA) at $25,358, the 100-day EMA at $26,461, and the 50-day EMA at $26,842. If the 50-day EMA support holds firmly, Bitcoin price could be in a better position to tackle the hurdles at $27,000 and $28,000, ultimately breaking out to $30,000. As the market continues to weigh the pros and cons, the future of Bitcoin seems to hold both challenges and potential for growth, keeping enthusiasts closely engaged.
Source: Coingape
