Bitcoin bulls are doing all that is possible to uphold their position above $30,000. This comes after a correction from the largest crypto’s recently achieved 12-month high, slightly above $31,000.
With 0.3% of accrued gains in the last 24 hours, Bitcoin price is trading at $30,380 on Wednesday. Meanwhile, reports in the market show that investors, both retail and institutional, are preparing for a “seasonal surge” in Bitcoin price.
History, according to Matrixport, a provider of crypto services, has shown that BTC tends to perform better in July.
Bitcoin’s performance over the past ten years demonstrates an impressive average surge of over 11% each July, with seven out of the last ten July months boasting positive returns, according to the report.
The study further revealed that the previous three years had yielded substantial returns in July, with respective increases of around 27%, 20%, and 24%.
“While summer tends to be a period of consolidation for bitcoin, a strong July tends to be followed by a mediocre August and a selloff in September,” Markus Thielen, the head of research, said in the report.
Bitcoin Price May Rally To $35,000 Before Retracing
The Matrixport report predicts an immediate Bitcoin price rally to $35,000. However, the crypto services provider cautions of a possible pullback to $30,000 ahead of the next spike beyond $40,000.
Bitcoin price is estimated to be worth $45,000 by the end of 2023.
Recent developments in the crypto market, including Blackrock’s decision to file with the US Securities and Exchange Commission (SEC) for a spot Bitcoin ETF and the launch of Fidelity-backed EDX Markets, may continue to supply BTC with the necessary momentum to climb to $35,000 in the short term.
Market participants, including analysts like Bloomberg’s Eric Balchunas, believe Blackrock is likely to get the SEC’s approval to operate the spot BTC ETF. In addition to this, Grayscale, the largest digital asset manager in the world, as per Bloomberg Intelligence’s Elliot Stein, has a 70% chance of winning the case against the SEC.
Another reason we give spot bitcoin ETF approval 50% chance is our senior legal analyst @NYCStein gives Grayscale a 70% chance of winning case against SEC, who could approve BlackRock’s ETF as way to save face using trusted ‘adult’ TradFi cos & stick it to Grayscale via @JSeyff pic.twitter.com/pHydOcpuQo
— Eric Balchunas (@EricBalchunas) June 27, 2023
Grayscale, since it applied to convert its Bitcoin Trust shares into a spot ETF was rejected, has been involved in a lengthy legal battle with the SEC.
“Grayscale has a 70% chance of winning its lawsuit against the SEC over the company’s bid to convert the Grayscale Bitcoin Trust (GBTC) to a Bitcoin ETF, we believe,” Stein explained.
Bitcoin Price In Consolidation
Bitcoin price has been doddering marginally above $30,000 since early this week. The Moving Average Convergence Divergence’s (MACD) position in the positive region shows that buyers have the upper hand.
However, the Relative Strength Index (RSI) retracement from the overbought region down to the midline shows that negative market forces are not favorable for a rally at the moment.
Therefore, support at $30,000 remains critical for the resumption of the uptrend. If declines overshoot this key area, the confluence support at $27,690 formed by the 100-day Exponential Moving Average (EMA) and 38.2% Fibonacci retracement level will come in handy.
Traders who may want to take long positions in Bitcoin price may want to wait until a trend reversal is confirmed above $30,000 and especially the 12-month high marginally above $31,000. From here, investors may acclimatize to a Bitcoin price rally to $35,000.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/bitcoin-price-primed-for-second-leg-up-targeting-35k-why-you-should-be-buying-btc/