BTC/USD has been inching closer to its 2023 highs as market sentiment improves across the board. The last couple of weeks have seen BTC fall below $25,000 and then reverse the trend, reaching $30,820. Mid-last week’s remarks by Jerome Powell, the US Federal Reserve Chair, initially discouraged investors in risk assets like Bitcoin and crypto; however, they soon began to comprehend the positive short-term sentiments stemming from the pause on rate hikes.
One significant reason for the resurgence of Bitcoin is Wall Street’s love affair with crypto. The recent filing by Blackrock for a spot Bitcoin ETF sent shockwaves around the world, and more Wall Street firms have started making moves in the crypto industry. Fidelity Investments, in collaboration with Charles Schwab, Citadel Securities, Fidelity Digital AssetsSM, Paradigm, Sequoia Capital, and Virtu Financial, launched EDX Markets, a new crypto exchange catering to brokers and investors in the digital asset space.
Additionally, Valkyrie Funds, which already manages a Bitcoin Strategy ETF and a Bitcoin Miners ETF, recently submitted its intent to establish a spot Bitcoin exchange-traded fund (ETF). However, the SEC has not yet given its approval for a spot Bitcoin ETF. WisdomTree, Invesco, and BlackRock have each made filings for their own spot Bitcoin funds in the past week.
As optimism builds for a possible spot Bitcoin ETF in the US, BTC price has made significant progress, breaking above resistance at $28,000 and $30,000. Interestingly, this uptick seems to be fueled by increased interest from both retail and crypto whale investors.
Nevertheless, Bitcoin’s climb above $30,000 currently faces mounting resistance at $31,000. This could call for a consolidation period in the range between $29,000 and $31,000. Analyst and trader Michaël van de Poppe suggests that as Bitcoin dominance approaches its point of resistance, it will allow the price to consolidate while giving altcoins some room to breathe and pick up the pace.
Investors should watch out for Bitcoin price movement when testing support at $29,000 and resistance at $31,000. A break above $31,000 could validate the next rally to $38,000. Conversely, sliding below $29,000 would strain the support at $28,000 and risk a more significant drop to $25,000. As always, conducting thorough market research before investing in cryptocurrencies remains essential for managing personal financial risks.
Source: Coingape
