After the bitcoin price hit a three-month low of $24,835 last week, the bulls seem to be gaining the upper hand once again. BTC price continued its upward trend over the past 24 hours and gained 1.6% to currently reach $26,795. At some point, BTC actually reached $27,203 before a corrective move occurred.
Why did bitcoin rise today?
As always, one can only speculate about the reasons for the bitcoin price hike. But thanks to BlackRock, the world’s largest asset manager, introducing a Bitcoin Spot ETF in the US, the upside has returned to the market. The Bitcoin Spot ETF is expected to open the floodgates for institutional investors.
As reported by NewsBTC, the date of the first US gold ETF in 2004 could be an indication of the bullish impact that the approval of the spot ETF could have. The gold ETF has been instrumental in institutional adoption of gold. Within eight years of the first ETF, the price of gold had more than quadrupled.
Basically, the SEC has 240 days (about eight months) to make a decision on the application. However, David Attlee, CEO of Bitcoin Magazine, confirmed Yesterday he heard a convincing argument that the BlackRock Bitcoin ETF could be approved soon (“days to weeks”).
This news may have a positive effect on the market like yesterday’s news that Fidelity may soon apply to a Bitcoin Spot ETF similar to BlackRock. Crypto Twitter is clearly becoming more bullish as a result of the BlackRock news.
Big BTC investors, the so-called whales, have also turned bullish on the leading cryptocurrency for some time. like mentioned With on-chain data analytics service Santiment, the whales have been busy over the past couple of months as the public has watched the prices drop.
“Now back over $27k again, it is no coincidence that wallets holding anywhere from $1k to $10k bitcoin have accumulated a combined $3.5 billion since the first week of April,” Santment says.
Intraday Trader @ 52Skew Make Similar note regarding BTC perp CVD bids and delta orders: “Whales are still mostly driving the price, longs are bouncing on this bounce, shorts are still swinging on every bounce.”
Moreover, the trader has noticed in the past few hours that there is a huge demand in the spot market on Binance, the largest crypto exchange. According to him, spot buying is a sign of a sustained rally, so it is better for spot buying to continue.
In terms of open interest and funding on Binance, Skew mentions that many short positions are chasing the price after long positions were curtailed earlier.
Predictions for the second half of 2023
Another bullish impact on the market could be the technical chart forecast for the second half of the year. As Axel Kebar, Certified Market Technician (CMT), He writes Via Twitter, BTC may be about to break out of a correction that has been occurring since mid-April:
It looks like we have a valid downward slope channel on BTCUSD with the upper boundary acting as short-term resistance at 27K. A breakout from the channel to complete the current pullback could lead to a broader H&S bottom reversal.
At the time of publication, bitcoin price has seen a minor correction and is trading at $26,795.
Featured image from iStock, chart from TradingView.com
