On Thursday, the crypto markets experienced a third consecutive day of gains, with the announcement of BlackRock’s plan to create a bitcoin exchange-traded fund (ETF) providing support. Despite facing regulatory scrutiny in the United States, BlackRock, as the largest asset manager in the world, filed for the creation of the ETF last week. If approved, this ETF would enable investors to gain exposure to the crypto asset class. The market cap of Bitcoin, the world’s largest crypto, was around $588 billion. Bitcoin’s dominance is currently 49.55%, an increase of 0.32% over the day.
On June 22, Bitcoin remained close to the $30,000 level as traders looked for chances to take advantage of the market dip. The previous day, Bitcoin had made an impressive comeback, reclaiming the $30,000 threshold for the first time since mid-April. This resurgence in price sparked optimism among traders who anticipated a modest correction, presenting attractive opportunities for entering long positions. The recent period of sideways movement in Bitcoin’s price had been accompanied by low volatility, a pattern often observed before significant price swings. Glassnode, a blockchain analytics firm, noted that such tight trading ranges have historically preceded substantial and volatile movements in either direction. This surge caught many traders off guard, resulting in around $125 million worth of leveraged short futures contracts being liquidated. Pinpointing the exact cause of the rally is complex, but some analysts suggest that it may be related to the anticipation of institutional investors entering the market if Blackrock’s application for an exchange-traded fund (ETF) receives regulatory approval. The potential inflow of institutional funds through an approved Bitcoin ETF is seen as a significant factor that could have contributed to the sudden price increase.
On June 19, Ether (ETH) found strong support around the $1,700 level, which sparked significant buying activity. The bulls continued to accumulate and drove the price above the 20-day Exponential Moving Average (EMA) at $1,781 on June 20. This breakthrough indicated a weakening bearish pressure in the market. The bullish momentum gained further strength on June 21 when the ETH/USDT pair broke above the downtrend line. With these positive developments, it is anticipated that the pair will continue to rally and may encounter psychological resistance around the $2,000 mark. Traders and investors are closely monitoring these price movements as Ether’s upward trajectory suggests a potential bullish trend in the near term.
On the macro front, BlackRock’s application for a Bitcoin exchange-traded fund (ETF) has sparked a wave of interest from other financial firms looking to enter the market. WisdomTree, an asset management fund based in New York, filed a new application for a Bitcoin ETF on June 21, following BlackRock’s lead. Invesco, an investment manager, also reactivated its application for a spot ETF shortly after. These announcements have had a positive impact on investor sentiment, leading to a short squeeze and attracting additional buying interest from traders who may have been waiting on the sidelines. The series of events in recent days have significantly increased buying interest in Bitcoin, causing its market dominance to rise above 50% on June 19. This indicates that Bitcoin remains the preferred choice among investors in the crypto market.
Technical Outlook
Bitcoin:
BITCOIN after making the previous top of $31,000 (on 14th April 2023) witnessed a correction and the prices fell almost by 20% and made a low of $24,800. The asset had strong and multiple support at the key level of $25,000 (Horizontal trendline, 200 Day Moving Average & 50% Fibonacci retracement Level). Though BTC went below the $25k mark it didn’t sustain and did not give a daily closing below the key support level. Post this move, the asset saw a rally and the prices made a high of $30,800. The bulls failed to push the prices above the previous top of $31,000 and have started consolidating around $30,000. Hence, to further rally, BTC needs to break, close and sustain above the key resistances of $31,000 and $32,500 whereas $28,500 will be a strong support.
ETH:
ETH after making the previous top of $2,146 was trading in a downtrend and the prices fell almost by 24% and made a low of $1,628.3. Post this move, the asset bounced from the lows and witnessed a sharp rally. The prices surged almost by 18% and made a recent high of $1,934 and have started consolidating around $1,880. ETH has strong resistance at $1,950 and $2,150. To further rally it needs to break, sustain and close above these levels. $1,775 to $1,750 will act as a strong support.
BNB:
BNB made a ‘Tweezer Top’ candle at the recent top of $350 and it has been trading downwards since then. The asset was trying to take support at the psychological level of $300. However, the bulls failed to defend the level and it finally broke the support. After breaking the support of $300, BNB witnessed a sharp fall and made a low of $220 within eight days. The asset took the support exactly at the Previous bottom of December 2022 and didn’t break the key level of $220 and bounced back from $220.4 up to $257. Breakouts below $220 or above $255 with good volumes will further decide the trend for the asset.
Weekly Snapshot
| USD ($) | 15 Jun 23 | 22 Jun 23 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $25,576 | $30,019 | 17.37% | $26,770 | $24,797 | $30,737 | $25,245 |
| ETH | $1,666 | $1,879 | 12.82% | $1,855 | $1,624 | $1,931 | $1,653 |
| BNB | $236.28 | $241.61 | 2.26% | $263.92 | $222.07 | $255.78 | $232.83 |
| crypto | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 29.55% |
| Ethereum (ETH) | 1.72% |
| Binance Coin (BNB) | -29.47% |
| Resistance 2 | $37,250 | $2,150 | $0.95 | $285 |
|---|---|---|---|---|
| Resistance 1 | $32,500 | $1,950 | $0.70 | $255 |
| USD | BTC | ETH | Matic | BNB |
| Support 1 | $28,500 | $1,750 | $0.50 | $220 |
| Support 2 | $25,000 | $1,600 | $0.41 | $200 |
Market Updates
- Bitcoin’s price is trading at around the $30K mark on major exchanges, but it skyrocketed momentarily to $138K yesterday on Binance US.
- Blockchain-based payments firm Ripple has obtained in-principle regulatory approval from Singapore’s financial regulator to offer digital asset payments and token products in the city-state.
- The European Union debit card provider for Cryptopay has lost its Electronic Money Institution (EMI) licence, according to a June 22 email sent to its customers. The company recommends to EU cardholders that they should immediately spend or transfer funds from their cards.
- The Netherlands has welcomed a new equity exchange-traded (ETF) fund that will give investors exposure to a basket of Bitcoin-related company stocks
- French investment firm Melanion Capital’s Bitcoin Equities ETF began trading on the Euronext Amsterdam Stock Exchange on June 22, introducing an equities-based approach to investing in the Bitcoin ecosystem.
