Bitcoin, the world's most renowned cryptocurrency, has recently reached its highest level in about a year, significantly contributing to the upswing of the crypto market1.
Bitcoin's Bullish Breakout
On June 23rd, Bitcoin's price shot up to over $31,400, marking the highest level since 2022. This surge came after a prolonged period of stagnation, with the cryptocurrency trading above $30,000 for the first time since April. The previous year was marred by the collapse of several prominent banks, which led investors to seek safer havens for their cash, with Bitcoin being a popular choice. In the face of financial turbulence, the world's most significant cryptocurrency has managed to rally by about 87% this year1.
This surge in Bitcoin's price comes in tandem with increased interest in cryptocurrencies from financial giants. BlackRock, the world's largest asset manager, recently applied to register a bitcoin spot exchange-traded fund (ETF), according to a U.S. Securities and Exchange Commission filing. Furthermore, EDX Markets, backed by esteemed firms such as Charles Schwab, Fidelity Digital Assets, and Citadel, has also launched its digital asset trading platform1.
Overcoming Regulatory Hurdles
However, this renewed enthusiasm for cryptocurrencies has not been without its challenges. The regulatory landscape has been particularly challenging, with the SEC suing Coinbase, the largest crypto exchange in the U.S., on allegations of acting as an unregistered broker. This lawsuit came on the heels of federal regulators suing Binance for operating an illegal exchange in the U.S. and allegedly mixing customers' assets1.
Despite these regulatory hurdles, Bitcoin's price continues to perform admirably. Nevertheless, it's important to note that Bitcoin's current price is still far below its all-time high of over $60,000 in 2021. This drop was largely precipitated by the Federal Reserve's aggressive interest rate hikes and the collapse of the crypto exchange FTX, which triggered a widespread sell-off in the crypto market1.
From a technical perspective, Bitcoin's price has been orbiting around the $30,716.30 area, representing a 38.2% retracement of the appreciating range from $29,539.57 to $31,443.67. The cryptocurrency has shown bullish indicators, with the 50-bar moving average (MA) on both the 4-hourly and hourly charts indicating above their 100-bar and 200-bar counterparts. However, on the 4-hourly chart, both the SlowK and MACD are bearishly below their respective averages, suggesting potential volatility ahead2.
Technical support for Bitcoin is expected around $24,440.41, $23,270.10, and $22,769.39, while resistance is anticipated around $31,986.16, $32,989.19, and $34,658.692.
As Bitcoin continues its strong performance in 2023, it’s evident that the cryptocurrency market is far from reaching its peak, despite its volatility and regulatory challenges. The increasing interest from financial giants and Bitcoin's resilience in the face of regulatory scrutiny indicate a promising future. However, investors must remain vigilant, understand