The crypto market has seen a rebound in the past few days due to a combination of technical and fundamental factors. The oversold level of the market assets prompted a price recovery, with the crypto market’s capitalization growing by over 2% to $1.05 trillion. Bitcoin (BTC) rebounded by 8.5% from its lows on June 15, while Ether (ETH) went up by over 9% in the past two days. Even last week’s worst performers, Solana (SOL), Cardano (ADA), and Polygon (MATIC), recovered by 8-15% in the same period.
One significant factor contributing to the market’s rise is the growing speculation around the possibility of the SEC approving the first Bitcoin exchange-traded fund (ETF). BlackRock, an investment firm managing $9.5 trillion in assets, applied to the SEC for a Bitcoin ETF on July 16. The company has applied for 576 ETFs in its history, facing only one rejection. If approved, BlackRock could potentially purchase every single Bitcoin available across crypto exchanges. However, the SEC has rejected all previous Bitcoin ETF applications, including those from asset managers like VanEck, Ark Invest, and Bitwise.
Looking ahead, technical analysis suggests that the crypto market has ranged inside a bull flag pattern since April 2023, which raises prospects of continuing its recovery trend toward $1.37 trillion into the second half of 2023 — up 35% from current valuations. However, bears may attempt to push the market cap below the bull flag’s lower trendline, risking invalidating the bullish setup altogether. In this bearish scenario, the crypto market would drop toward the next major support at $875.50 billion, an important level from the June-November 2022 and March 2023 sessions.
As with any investment, every move in the crypto market involves risk, and investors should conduct their own research when making a decision. The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of Cointelegraph.
Oversold bounce across top crypto market assets
On June 17, the crypto market’s capitalization grew by over 2% to $1.05 trillion, up nearly 7.5% from the $975.25 billion low seen two days ago.
Interestingly, the crypto market cap started recovering a day after its daily relative strength index’s (RSI) reading fell almost to 30, indicating its nearly “oversold.”
From a technical perspective, an oversold RSI prompts a price recovery or consolidation, as shown below.
Blackrock’s Bitcoin ETF buzz
In addition to the technical bounce, growing speculations around the first Bitcoin ETF approval in the U.S. helped the crypto market bounce.
Notably, BlackRock, an investment firm managing $9.5 trillion in assets, applied to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin ETF on July 16. Throughout its history, the company has applied for 576 ETFs, facing only one rejection.
Excerpts from Davis’s statement:”Only about 10% of all Bitcoin [worth $50 billion] is sitting on exchanges. 0.5% of BlackRock money movings to BTC would buy every single coin available.”
Crypto market outlook for H2 2023
Looking ahead, technical analysis suggests that the crypto market has ranged inside a bull flag pattern since April 2023, which raises prospects of continuing its recovery trend toward $1.37 trillion into the second half of 2023 — up 35% from current valuations. However, bears may attempt to push the market cap below the bull flag’s lower trendline, risking invalidating the bullish setup altogether. In this bearish scenario, the crypto market would drop toward the next major support at $875.50 billion, an important level from the June-November 2022 and March 2023 sessions.