Bitcoin price up today?
After reaching a low of $24,835 last week, the price of Bitcoin seems to be rising again. In the last 24 hours, the BTC price has gone up 1.6% to $26,795. At one point, it even reached $27,203 before a correction occurred.
Why Is Bitcoin Up Today?
As always, one can only speculate about the reasons behind the rise in Bitcoin’s price. However, the filing by BlackRock, the largest asset manager in the world, for a Bitcoin Spot ETF in the US, has brought back bullish sentiment to the market. A Bitcoin Spot ETF is expected to attract institutional investors.
As reported by Blockchain, the first gold ETF in the US in 2004 could be an indicator of the bullish impact that the approval of a spot ETF could have. The gold ETF has played a significant role in the adoption of gold by institutions. Within eight years of the first ETF, the price of gold had more than quadrupled.
The US Securities and Exchange Commission has approximately eight months to decide on BlackRock’s application. However, David Attley, CEO of Blockchain, stated yesterday that he had heard a compelling argument that the BlackRock Bitcoin ETF could be approved shortly (“days to weeks”).
This news may have had a positive impact on the market, just like yesterday’s news that Fidelity may also soon apply for a Bitcoin Spot ETF similar to BlackRock’s. The BlackRock news has made Crypto Twitter much more bullish.
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Large investors in BTC, also known as whales, have been bullish on the leading cryptocurrency for a while. According to on-chain data analytics service Santiment, whales have been busy accumulating BTC over the past two months while the price has been falling.
“Now back above $27k once again, it’s far from coincidence that wallets holding 1K to 10K $BTC have accumulated a combined $3.5B since the first week of April,” Santiment states.
Intraday trader @52Skew made a similar observation regarding BTC perp CVD buckets & delta orders: “Whales mostly driving price still, longs aped on this bounce, shorts still twaping on every bounce.”
Furthermore, the trader noticed in the last few hours that there was a lot of demand in the spot market on Binance, the largest crypto exchange. According to him, spot buying indicates a sustained rally, so ideally, spot buying should continue.
In terms of Binance open interest and funding, Skew states that many shorts are chasing the price after the longs were squeezed earlier.
Outlook For H2 2023
Another bullish impact on the market could be the technical chart outlook for the second half of the year. Chartered Market Technician (CMT) Aksel Kibar writes via Twitter that BTC could be on the verge of breaking out from the correction that has been taking place since mid-April:
Looks like we have a valid downward sloping channel on $BTCUSD with the upper boundary acting as short-term resistance at 27K. Breakout from the channel can complete the existing pullback to the larger scale H&S bottom reversal.