Our experts have analysed the cryptocurrency market and explained how it could change in the short term for BTC
The week from 26 June to 2 July was quiet. BTC/USDt traded between $29,500 and $31,282. The increased volatility was observed at the end of the week on Friday. There were reasons for it. However, the market quickly calmed down, so the consolidation in the limited range causes some optimism. And regarding the continuation of the uptrend through July 22.
In the first half of the week, sellers tried to break the support of $29,900 on the background of the statements of the US Federal Reserve Chairman J. Powell.
He made at the European Central Bank forum about possible increase of interest rates twice this year, but failed. The price bounced back to the $31,282 level. The publication of first quarter GDP data supported the dollar but had no effect on the crypto market.
Bitcoin rose on news that asset manager Fidelity Investments had applied to create a bitcoin spot fund (ETF). It joins other management companies, including BlackRock, WisdomTree, Invesco and Bitwise, which had earlier applied for a bitcoin ETF this month. In addition, CME Group announced the launch of new futures for the ETH/BTC ratio. And that also had a positive effect on the entire market.
On Friday, the market saw increased volatility. Bitcoin plummeted 5.26% to $29,500 in 15 minutes. For the crypto market, such a dip is commonplace. As the price may well show a drop of 15-20% on negative news.
The US Securities and Exchange Commission (SEC) has told the Nasdaq and Cboe exchanges that recent bids from BlackRock, Fidelity and others for spot bitcoin-ETF funds were not “clear and comprehensive”. This was reported by The Wall Street Journal, citing people familiar with the matter. The SEC returned the applications because they lacked sufficient information. Including a so-called joint supervision agreement or details of the mechanism. The fall in the price of BTC has been limited because companies can update the wording and resubmit applications.
Important events and short forecast
The US markets will close early on July 3 and will not be open on July 4 due to the bank holidays, Independence Day. Minutes from the last US FOMC meeting will be published on Wednesday (5 July). And non-farm payroll data will be released on Friday (July 7). These are the key events for the week. Also keep an eye on the news from the SEC and companies that have previously filed for BTC spot ETFs.
Sellers managed to remove protective stops on long positions below $29,800 to $29,900. After falling to $29,500, the price returned to $30,748 and stabilised around $30,400. The ETH/USDt pair jumped to $1,948 after falling to $1,825.
Our experts note that on the whole the technical picture is favorable for the continuation of the upward movement to $34k. The growth phase should last until July 22. Then there will be a downward correction or sideways movement until September. The S&P500 index is recovering well. And there is a reserve for growth in the range of 6%. Buyers still have time to move up before the US Fed meeting.
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