Bitcoin (BTC) broke out on Tuesday night, rocketed through $29,000 yesterday afternoon, and then spiked as high as $30,800. That was the highest price since the peak in mid-April. Bitcoin then sought support around $30,000 and seems to have found it for the time being.
At the time of writing, bitcoin tops out at $30.10 and tops out on Binance and $20,505 on Bitvavo. This puts the bitcoin price down 2% today. The total market capitalization is $418 billion and the dominance is 42.1%. The Fear & Greed Index comes out at 65 (Greed).
Bitcoin Fear and Greed Index is 65. Greed
Current price: $30,038 pic.twitter.com/z8bSUXetNQ— Bitcoin Fear and Greed Index (@BitcoinFear) June 22, 2023
Bitcoin is getting support from traditional institutional corners
Bitcoin took a big hit this month, but has now recovered not only from the June hit, but even from the overall downward trend since April.
The increase follows positive news from the traditional financial world. This started with the application of a bitcoin exchange traded fund (ETF), or exchange-traded fund, from Blackrock, the largest asset manager in the world. This has given several companies the confidence to try again.
Quick inventory of spot bitcoin ETF filings since last Thursday…
iShares (world’s largest ETF issuer)
Bitwise (knows space inside & out)
WisdomTree (top 10 issuers)
Invesco (4th largest issuer)
What changed recently?
SEC has been on warpath against crypto.
Something’s up.
— Nate Geraci (@NateGeraci) June 21, 2023
Fed Powell says more rate hikes
Yesterday, Federal Reserve Chairman Jerome Powell spoke before the US Congress. He reiterated that there is still a long way to go to bring inflation down and hinted at more rate hikes. That may have caused US stock markets to close in the red yesterday.
Still, Powell was somewhat remarkably positive about crypto. He acknowledges that crypto has “staying power” as an asset class and that the Federal Reserve sees stablecoins as a form of money.
Bullish tune-on #Crypto from Jerome Powell for a change 👇pic.twitter.com/nfjHe6hIQi
— Crypto Tony (@CryptoTony__) June 21, 2023
Powell will speak again later today, but this time before the Senate Banking Committee. Important figures for the US economy will also follow today with the so-called initial jobless claims.
Macro Releases – Thursday, June 22 🗓
🇺🇸 Initial Jobless Claims
🇺🇸 Existing Home Sales (May)
🇺🇸 Existing Home Sales (MoM) (May)
🇺🇸 Fed Chair Powell Testifies
🇺🇸 US Leading Index (MoM) (May)$MACRO #fed #FOMC $SPY— BACH (@MortensenBach) June 22, 2023
BTC surge is due to pros accumulating
According to Willy Woo, the increase was mainly caused by experienced traders accumulating during the decline. He expects these investors to trade against a weak US dollar index (DXY). These traders are not selling yet, but that could change soon, the analyst warns
This move was dominated by pros accumulating against a price decline.
Chart shows futures demand, usually the instrument of pros. They aren’t lightening their bags just yet, this can change fast.
Spot demand (longer term) was insignificant pic.twitter.com/FbXOkK8S2x
— Willy Woo (@woonomic) June 22, 2023
Next resistance above USD 34,000?
After bitcoin found support around 61.8% golden ratio of the Fibonacci retracement, around USD 26,190, bitcoin could rise. The next major resistance, according to analysis firm Glassnode, is at the 50% Fibonacci retracement, around $34,280. That would be a new high for this year, but first bitcoin must break the April peak of $31,000.
The #Bitcoin Spot Price has found robust support at the -61.8% golden ratio Fibonacci retracement at $26,190.
The next direct resistance according to the Fibonacci model resides as the -50.0% retracement of $34,280. pic.twitter.com/68TxX2roqk
— glassnode (@glassnode) June 21, 2023
Are you looking for more insight into crypto prices or help with trading?
In the premium environment of Crypto Insiders you will find a vibrant and friendly community of over 1,000 members helping each other to trade. Also, our analysts share more than 20 technical analyzes here every week exclusively for premium members. View our Premium page for more information and try the first 30 days for free.
Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences.