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UK Bitcoin Investors Nervous as Value May Drop Sub-$30,000; BlackRock ETF Optimism Diminishes

Published 26/06/2023, 11:09
© Reuters
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BTC/USD
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BTC/USD
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Investing.com - After accentuating its gains to a new annual high of $31,415 on Friday, Bitcoin corrected slightly over the weekend, and remains under pressure this Monday morning, with the cryptocurrency marking a recent low of $30,020.

It should be remembered that the rise in BTC and the crypto market in general last week was fuelled by several ETF filings from big names in finance such as BlackRock (NYSE:BLK), Wisdom Tree and Invesco.

However, after the initial euphoria linked to the hope that the SEC would validate these ETF applications, as they came from long-standing players in traditional finance, the market began to have doubts, as the SEC's hostile stance towards the crypto industry, with several lawsuits pending, meant that the regulator's credibility could be put at stake if these ETF applications are validated.

In other words, crypto traders seem to be starting to factor in the risk of disappointment if (when) the SEC denies the recent Bitcoin spot ETF applications.

It should also be noted that this week will be packed with economic events and speeches by central bankers. Macro news will therefore also be important for anticipating developments in Bitcoin.

Technical thresholds to watch on BTC/USD

From a chart point of view, a return of Bitcoin below the major psychological threshold of $30,000 would be a major bearish signal.

Bitcoin chart

In this case, the $29,000 zone, then the zone formed by the 100-day moving average at $27,900 and the $28,000 threshold will be the first supports to be taken into account.

On the upside, the $31,000 threshold and the annual high of around $31,400 form Bitcoin's first major resistance zone.

(Translated from French using DeepL)

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