After Bitcoin hit a new yearly high at $31,413, the buy side has so far failed to initiate a trend-following move to the north. While the bulls fended off a sell-off last Friday in the wake of the SEC’s perceived concerns over a Bitcoin spot ETF approval, the momentum seems to be leveling off more and more, isn’t it?
What’s next for the Bitcoin price?
As the market awaits approval from the Security and Exchange Commission (SEC) regarding a spot Bitcoin exchange-traded fund (ETF), investors appear to be cautious. While open interest in the Bitcoin futures market continues to rise, activity in the spot market has recently declined.
This shift indicates that the price action of the past few days has been primarily influenced by futures traders. Analyst @52Skew noted on Twitter, “$BTC Spot CVDs & Delta: There is still quite a bit of spot being dumped in the market + no limit being chased by coin buyers today. Spot bid liquidity $30.5K.
This finding underscores the reticence of spot market investors who may be waiting for a decisive move from the SEC. However, it should be noted that US markets were closed yesterday due to the 4th of July holiday. Recently, a huge spot buying volume came from Coinbase, driving the market up. So today will be interesting to see if yesterday’s retracement is bought by US investors today.
Bitcoin’s dominance, which had risen to resistance at 52.15%, has now consolidated somewhat and is down to 51.25%. This consolidation, coupled with the entry of investors into the altcoin sector, reinforces the prevailing wait-and-see attitude among investors.
Analyzing the Bitcoin price, it is clear that the market is currently facing strong resistance in the $31,300 to $31,416 range. The $30,700 support area is currently proving to be a critical point to watch. Remaining above this support could give buyers the chance to launch a renewed offense.
If Bitcoin price can dynamically break out above its year-to-date high, the next major chart hurdle awaits at $32,500. Still, a temporary return to the support area at $29,800 could be acceptable to gain momentum for the next breakout attempt.
So far, the bears have had no follow-up. The sell side also failed in its attempt to sell back BTC price in the higher time frames below the psychologically important $30,000 level in recent days. The bears’ goal should be to push Bitcoin permanently below $29,800.
Experts remain bullish for now
Noted analyst Josh Rager believes the pullback won’t be as deep as many experts expect, suggesting that ETF approval, particularly from BlackRock, is a real possibility. He says, “Only a rejection of an ETF can cause pain, but I think BlackRock will be approved this time.” add:
The $24,000 then up sentiment seems to be quite popular. I think people think too much about it. The same was said about Bitcoin having to swipe $20,000 first. IMO, pullbacks won’t be that deep now and if we manage to see $25k again, it won’t be until later in the year after more upside before that.
Similarly, NewsBTC chief analyst Tony “The Bull” believes in the near-term bullish case for BTC. However, he emphasizes the importance of Bitcoin’s Relative Strength Index (RSI) entering overbought territory, as it cannot assign a lack of strong upside momentum:
I want Bitcoin RSI to move into overbought conditions by the end of the weekend or I’m worried this isn’t momentum yet. We have a weekly doji, which indicates indecisiveness. We must continue this week or more correction becomes more likely with possible bear div.
Featured image from iStock, chart from TradingView.com