Amid intense volatility in the crypto market, Bitcoin has once again proven its resilience and adaptability. The major cryptocurrency broke above the $26,000 mark, entering what many analysts call the “acceleration zone.” This price surge comes amid a wave of bullish energy sparked by BlackRock’s plan to introduce a Bitcoin Exchange-Traded Fund (ETF). Bitcoin’s rallying trend comes at a time when the SEC is stepping up its scrutiny of the crypto market.
Bitcoin is poised for a massive boost
On June 14, 2023, the Federal Reserve’s FOMC held interest rates steady at 5-5.25% after ten successive hikes. The following day, the ECB announced a 0.25% increase in its three key interest rates, effective June 21, 2023. These developments triggered a massive sell-off in Bitcoin, pushing it to a three-month low.
However, the price of BTC quickly recovered from its lows, sparking another bullish sentiment among traders. Bitcoin’s market dominance has peaked since July 2021, indicating renewed interest in the leading cryptocurrency among traders and investors.
Recent data from TradingView shows that Bitcoin’s dominance, its proportion of the total cryptocurrency market cap, has peaked at 49.8%. This is a level not seen since July 2021, when Bitcoin dominance exceeded 48%.
It should be noted that Bitcoin’s dominance briefly reached 48.83% in April this year, after which it hovered within a certain range.
Additionally, BlackRock’s involvement in Bitcoin could attract institutional investors and foster wider acceptance of the cryptocurrency, given its management of over $9 trillion in assets. The ETF’s structure and BlackRock’s reputation could provide traditional investors with a regulated path to Bitcoin, boosting its price significantly in the coming weeks.
What’s next for the BTC price?
Bitcoin is currently showing a massive bullish candle after breaking above the EMA20 trendline and breaking above the $26,000 resistance level. As the price has rallied from its lower region, this suggests massive whale activity near the bottom. Currently, the price of BTC is trading at $26,437, up more than 5% in the past 24 hours.
BTC price has been swinging between the 20-day EMA and key support at $25,250 recently, implying that while the bulls were buying lower, the bears were holding their edge.
Rising EMA lines suggest intense bullish dominance with the MACD trendline hovering near a positive region. The RSI indicator has seen an exponential surge over the past few minutes as it surged above the midline and is currently attempting to enter an overbought region.
If BTC price breaks above the immediate resistance at $26.6,000, it would suggest further buying activity. A break above $27,343 will push the price to its next resistance at $28,090.
Conversely, if the price drops from its current position and breaks below $25,550, it would imply that the bulls are pulling back. The price of BTC could initially drop to the support line of the channel and potentially to the $20,000 mark.
