An onslaught of Bitcoin ETF applications could help BTC price find long-lasting support at the $30,000 level
An onslaught of Bitcoin ETF applications could help BTC price find long-lasting support at the $30,000 level.
The S&P 500 Index (SPX) snapped a five-week winning streak last week but it is still on track to close the first half of the year with stellar gains of nearly 13%. The tech-heavy Nasdaq Composite has done much better as it is up about 29%. Both these indices have been overtaken by Bitcoin (BTC) which has risen nearly 83% year-to-date.
Bitcoin’s bullish price action and the recent rush by several firms to apply for a Bitcoin spot exchange-traded fund seem to have attracted institutional investors’ attention. Bloomberg senior ETF analyst Eric Balchunas highlighted on June 26 that the ProShares Bitcoin Strategy ETF (BITO) — a Bitcoin futures fund — witnessed its largest weekly inflow in a year.
Another bullish view was that of LookIntoBitcoin founder Philip Swift who said in his latest research that Bitcoin’s RHODL ratio metric is showing that Bitcoin’s supply has started to move from long-term holders to speculative investors, indicating increasing mainstream trading interest.
Could the entry of speculators boost prices further or is it a sign that the markets are overheated in the near term and may correct? Let’s analyze the charts to find out the next possible move.
S&P 500 Index price analysis
The S&P 500 Index turned down from 4,448 on June 16, indicating that the short-term bulls are booking profits. That has pulled the price to the breakout level near 4,325. The 20-day exponential moving average (4,314) is placed just below this level, hence the bulls are likely to defend it aggressively.
If the price rebounds off the 20-day EMA, it will suggest that the sentiment remains positive and traders are viewing the dips as a buying opportunity. The bulls will then try to propel the price above 4,448 and resume the uptrend. If they succeed, the index could attempt a rally to 4,650. There is a minor resistance at 4,500 but it is likely to be crossed.
This positive view will invalidate in the near term if the price turns down and plummets below the 20-day EMA. The index could then start a deeper correction to the 50-day simple moving average (4,206).
U.S. dollar index price analysis
The U.S. dollar index plunged below the 50-day SMA (102.68) on June 15 but the bears could not build upon this strength. The bulls are trying to form a higher low near 102.
Buyers pushed the price above the moving averages on June 23 but the long wick on the candlestick shows that bears are selling at higher levels. The 20-day EMA (102.92) is flattening out and the RSI is near the midpoint, indicating a balance between supply and demand.
If the price closes above the 20-day EMA, the index could rise to the downtrend line. The bears are expected to defend this level with all their might. The important level to watch on the downside is 102. A break and close below this support could sink the index to 100.82.
Bitcoin price analysis
The bears are aggressively defending the $31,000 level but the bulls are not allowing the price to sustain below $30,000. This suggests that lower levels are being bought.
A tight consolidation near the overhead resistance of $31,000 shows that the bulls are in no mood to book profits as they expect the up-move to extend further. The rising 20-day EMA ($28,288) and the relative strength index (RSI) near the overbought zone indicate the path of least resistance is to the upside.
If bulls propel the BTC/USDT pair above the $31,000 to $31,500 resistance zone, it will signal the start of the next leg of the uptrend. There is a minor resistance at $32,400 but it may not hold the price for long. A rally above this resistance could clear the path for a dash to $40,000.
Ether price analysis
Ether (ETH) has been trading in a tight range between $1,936 and $1,861 for the past few days. This suggests indecision between the bulls and the bears.
The rising 20-day EMA ($1,822) and the RSI in the positive territory indicate that bulls have the upper hand. If buyers kick the price above $1,936, the ETH/USDT pair could rise to the psychologically important level of $2,000. This level may act as a hurdle but it is likely to be crossed. The pair may then soar toward $2,200.
If bears want to prevent the upside, they will have to tug the price below the support at $1,861. The pair may then slip to the moving averages, which is an important level to keep an eye on. If this level cracks, the pair may again descend toward $1,700.
BNB price analysis
BNB (BNB) bounced off the strong support at $230 on June 24, indicating that the bulls are trying to arrest the decline at this level.
The bulls will have to push and sustain…
cointelegraph.com