The bullish move for Bitcoin continues as price action managed to break major resistance levels in the past three days. As of press time, Bitcoin is trading at the $8,335 level. Total market capitalization is now at $300 billion and Bitcoin dominance is at 47.2%. The bullish scenario is looking good for Bitcoin, but technical analysis indicate that a corrective move may be imminent.
Trading over the US Dollar, Bitcoin price managed to break above the 0.5 Fibonacci target, which is the $7,940 mark. Currently, price is consolidating around the 0.618 Fibonacci level around the $8,400 mark, with next target for bullish move set at $9,000 around the 0.786 Fibonacci level, which also serves as psychological resistance.
On the other hand, the aggressive bullish move may have a retracement at the $7,940 mark with double support convergence of 0.5 Fibonacci level and the trend line support that served as previous resistance line.
Looking at the Bollinger bands, price action is already breaking the upper Bollinger band, which could mean that the next move may be a correction. The MACD indicates that momentum is highly in favor of the upward buying sentiment. The RSI is currently way up around the overbought region, which further supports the scenario that Bitcoin price may see a retracement in the coming days.
Bitcoin ETF Update
One of the major issues pushing the Bitcoin price upward is the pending approval of the Bitcoin ETF, which is still hanging in the air. An insider from the U.S. Commodity Futures Trading Commission says,
“I would call it 90% at this point. The crypto markets have moderated and regulators have watched the lack of drama surrounding Bitcoin futures across several global exchanges. The price moderation and adoption of a ‘peer product’ is what the conversations have centered around. In January we were justifiably concerned about a bubble and the harm a quickly approved product could attract speculators and create losses that led to significant lawsuits. Now, those factors seem to be mitigated significantly.”
A second source who was a former SEC employee commented,
“I would expect a positive outcome in September – or if it gets strung out a little further it is simply a few ‘dotted i’s and crossed t’s’ are being finalized on larger regulatory language in the crypto space. To be clear, most of the regulation will be first focused on ICO’s and the issues those pose for retail investors at the moment. US residents are sending money to all sorts of exotic locations to invest in unregulated instruments with absolutely zero recourse for losing every cent they’ve put at risk. ICO regulation will begin to solve those issues and keep client assets ‘onshore’.”
When Bitcoin ETF gets approved, huge amounts of money could flood the cryptomarket, which could potentially spark another bull run toward new all-time highs for Bitcoin.