Bitcoin is currently trying to be the star of the recovery show. In the past few hours, Bitcoin has once again caught the attention of investors and traders as it sparked another push towards the $30,000 mark from a critical support level it touched yesterday. This surge left many wondering if now was the right time to buy Bitcoin price.
Bitcoin ETFs continue to fuel bullish momentum
As Bitcoin ETFs continue to grow in popularity, they attract a diverse mix of investors. Recently, they managed to maintain the bullish sentiment around Bitcoin by bringing in increased institutional participation.
Recently, the US SEC began reviewing applications from six companies, including BlackRock, to establish spot Bitcoin ETFs. Other companies include Bitwise, VanEck, WisdomTree, Fidelity and Invesco, with all of their proposals now listed in the Federal Register. This news succeeded in preventing the price of BTC from falling sharply below the crucial support of $29.6,000.
Since January 2023, the rise in the Bitcoin trust premium, which narrows the gap between the market prices of the trust and Bitcoin, illustrates investors’ growing optimism towards Bitcoin. Additionally, looking at the profits and losses made by BTC holders, this showed Bitcoin moving from a capitulation phase, indicating a transition of the market from extreme fear and selling to a more stable state.
BlackRock’s venture into the Bitcoin ETF market could potentially be a game-changer for Bitcoin and the crypto market. Charles Edwards, founder of Capriole Investments, believes that an approved BlackRock Bitcoin ETF could lead to increased institutional investment and score significant approval.
Given BlackRock’s impressive 99.8% success rate with ETFs, their impact should not be underestimated. It’s worth recalling the gold ETF’s debut in 2004, which sparked a massive 350% rise and a bull run that lasted seven years!
Also Read: ProShares BITO ETF: A Close Competitor to Bitcoin Spot Price Amid ‘Cost of Rolling’ Controversy
Bitcoin hits the $30,000 mark
Bitcoin’s value dipped below the 20-day exponential moving average (EMA) of $30,032 and reached the critical support level of $29,500. This indicates that despite lower levels, buyers are still attracted to the market, as evidenced by the long tail on today’s candlestick.
Buyers are strongly yearning for the price near the downside and the balance between supply and demand is suggested by the flat 20-day EMA and Relative Strength Index (RSI) being close to the midpoint. If the price breaks above the 20-day EMA due to buying pressure, we could potentially see a rally to $30,615 and then to $31,846. This area should be fiercely defended by vendors.
The start of the next trend could be triggered by either a push above $32,500 or a drop below $29,500. If the range drops to $29,500, we could see the price drop to $27,200 and possibly to $26,000. Conversely, if the bulls manage to send the price past $32,400, the pair could trigger a rally towards the $40,000 mark.