What’s next for bitcoin? Bulls are not over yet

After bitcoin reached a new yearly high of $31,413, the buy side has so far failed to move trend-following north. Although bulls stopped selling last Friday in the wake of the SEC’s reported concerns over bitcoin spot ETF approval, momentum seems to be waning fast, or isn’t it?

What’s next for the price of bitcoin?

As the market awaits approval from the Security and Exchange Commission (SEC) regarding a spot bitcoin exchange-traded fund (ETF), investors are exercising caution. While open interest has been rising in the bitcoin futures market, activity in the spot market has recently declined.

This reversal shows that the price action in recent days has been mainly influenced by futures traders. Analyst @52Square noted On Twitter, “$BTC Spot CVD & Delta: Lots of spot still being dumped into the market + no limit from Coinbase buyers today. Spot Bid Liquidity $30.5K.”

This observation underlines the reluctance of investors in the spot market who would be waiting for a decisive move by the SEC. However, it should be noted that the US markets were closed yesterday for the 4th of July holiday. Recently, there was a significant amount of spot buying from Coinbase, which boosted the market. So it will be interesting to see whether yesterday’s retracement gets bought by US investors today.

Bitcoin dominance, which rose to resistance at 52.15%, has now consolidated somewhat to 51.25%. This consolidation, coupled with the entry of investors into the altcoin space, reinforced the wait-and-see attitude prevailing among investors.

Analyzing bitcoin price, it is clear that the market is currently facing a strong resistance between $31,300 and $31,416. The $30,700 support area is currently proving to be an important mark to watch. A stay above this support could provide an opportunity for buyers to initiate a fresh offense.

If bitcoin price can dynamically move above the year-to-date high, the next major chart hurdle awaits at $32,500. Nevertheless, a temporary retracement towards the $29,800 support area might be acceptable to gain momentum for the next breakout attempt.

So far, the bears have lacked follow-through. The sell side also failed in its attempt to sell BTC price below the psychologically important $30,000 level on higher time frames in recent days. The bears should aim to push bitcoin permanently below $29,800.

Experts Still Upbeat

Noted analyst Josh Rager believes the pullback won’t be as deep as many experts expect, suggesting ETF approval, especially from BlackRock, is a real possibility. “Only ETF rejection can cause pain, but I think BlackRock will get approved this time,” he says. Add,

$24k, then the upward sentiment seems to be quite popular. I think people are overthinking this. Similar was said about bitcoin that it needs to raise $20,000 first. IMO, the pullbacks won’t be that deep now and if we manage to see $25,000 again it won’t be until the end of the year, followed by more bounce back before.

Similarly, NewsBTC lead analyst Tony “The Bull” believes in a bullish case for BTC in the near term. However, he stressed the importance of Bitcoin’s Relative Strength Index (RSI) entering overbought territory, as a failure to do so could prompt Lack of strong upward momentum:

I’d like to see the bitcoin RSI turn overbought by the end of the week, otherwise I’m worried that this is not an impulse move yet. We have a doji on the weekly, indicating indecision. We need to see a follow through this week, else a possible bearish correction will make the chances of a higher correction higher.

Featured Image from iStock, Chart from Tradingview.com