The cryptocurrency market seems to be carrying a bullish sentiment, as Bitcoin (BTC) price crossed the $31,000 price mark. As of July 4, 2023 (11.11 am, Indian Standard Time), CoinMarketCap, a crypto price-tracking website, mentioned BTC’s price to be $31,064.46, at around $603 billion worth market capitalisation. “I believe the market looks bullish. There is believed to be institutional interests and regulatory clarity across governments. The sentiment on crypto twitter seems happy and positive after a long time,” Dheeraj Shah, a Web3.0 content creator, told FE Blockchain.
CoinMarketCap further stated that BTC price witnessed a nearly 1.10% increase on a 24 hour basis, and close to 2.40% rise based on the last seven days. It’s believed that institutional impact on BTC seems to be contributing towards this upward trend. As per CoinDCX, a crypto investment application, BlackRock, Invesco and WisdomTree entering the BTC ETF landscape has been attributed with BTC’s rising price levels, on account of increase in institutional investors around digital assets. The application also highlighted that interest rate calls can influence BTC’s price, as Federal Reserve reportedly aims to go for high interest rates.
“I believe factors contributing to BTC include stabilisation of interest rates which helps in money flow. Easing interest rates can make credit cheaper to allow participants to invest using debt. Institutions filing for BTC ETFs could also be another factor as this shows that crypto is becoming mainstream,” Rahul Pagidipati, CEO, ZebPay, a cryptocurrency exchange, stated.
Ever since BlackRock, followed by Invesco and WisdomTree, took the decision to invest in BTC ETFs, it’s been found that BTC’s price hasn’t dropped below the $25,000 level. As stated by Investing.com, a financial markets platform, from June 15, 2023, onwards, which’s when BlackRock entered the BTC ETF market followed by Invesco and WisdomTree on June 21, 2023, BTC clocked the highest value of $31,151.30 (July 3, 2023) and lowest value of $25,591.30 (June 15, 2023). Upon calculating the average BTC price based on Investing.com’s data, for June 15 to July 3, 2023, it stood at approximately $29,260.
According to data from CoinCodex, a cryptocurrency data website, Bitcoin’s 200-day simple moving average (SMA) should witness an upward trend to $26,776 within August 2, 2023, and will clock a $30,438 price with regard to 50-day SMA by the same date. Moreover, future predictions indicate that by 2023 end, BTC can cross the $35,000 price level. Further research, based on the website’s data, suggests that Bitcoin will be around the $38,000 price range by 2023 end. Overall, indicators such as the Relative Strength Index (RSI) momentum oscillator expects Bitcoin price to have an upward trend, as the RSI value is 71.10 which signifies BTC market is in an overbought situation.
“Bitcoin broke the ceiling of descending trend channel in medium term. This suggests a slower rate of decline or the beginning of a horizontal development. Especially for large stocks, a high RSI can be a sign that the stock is overbought and there is a chance for a downward reaction,” Sathvik Vishwanath, co-founder and CEO, Unocoin, a cryptocurrency exchange, concluded.
