The price of Bitcoin (BTC) surged to over $31,400 on Friday, reaching its highest level since 2022, fueled by growing institutional interest in the maiden cryptocurrency.
Although Bitcoin briefly retracted, it has managed to maintain a trading value above $30,000 for the first time since April. This price level has proven to be a significant resistance point throughout 2023.
Having risen by over 85% in value this year, the recent rally faces uncertainties regarding the sustainability of its gains. The overall market grapples with regulatory concerns and macroeconomic factors contributing to the prevailing uncertainty.
In this line, crypto trading expert and analyst Michaël van de Poppe expressed doubts about the cryptocurrency’s ability to sustain its rally in a tweet on June 24. However, he noted that if Bitcoin experiences a minor correction to around $28,500, it will present an ideal opportunity to accumulate the asset.
“Bitcoin made a nice high, through which it swept the yearly high. I’m unsure whether we’ll continue running from here, but during uptrends you’ll most likely see price continuing to run rather than have deep corrections. If we have a correction, $28,500 I buy,” he said.
Institutional interest boost Bitcoin’s value
The current surge in Bitcoin’s value can largely be attributed to the increasing interest from major financial institutions. Notably, BlackRock (NYSE: BLK), the world’s largest investment management company, recently applied to register a Bitcoin spot exchange-traded fund (ETF).
Furthermore, this week witnessed the launch of a digital asset trading platform by EDX Markets, a cryptocurrency exchange supported by renowned firms such as Charles Schwab, Fidelity Digital Assets, and Citadel.
These initiatives have instilled investor confidence in the crypto space, especially at a time when the Securities Exchange Commission (SEC) has intensified its regulatory crackdown on crypto exchanges like Binance and Coinbase over the alleged listing of unregistered securities.
Bitcoin price analysis
In terms of Bitcoin’s price analysis, as of now, it is comfortably trading above the resistance level of $30,000, with a valuation of $30,621. On the weekly chart, Bitcoin has experienced a growth of over 15%.
Moreover, the Bitcoin one-day technical analysis obtained from TradingView indicates a bullish trend. The gauges summarize a “buy” sentiment at 14 while moving averages suggest a “strong buy” at 13. Oscillators remain neutral, with a sentiment score of 8.
Despite its substantial growth this year, Bitcoin still trails behind its previous record high of over $60,000, achieved in 2021.
The cryptocurrency faced significant challenges last year due to the Federal Reserve’s swift interest rate adjustments and the collapse of the crypto exchange FTX. These events triggered a widespread sell-off in the crypto market, consequently impacting Bitcoin’s value.
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