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The crypto market is up today, continuing gains from Friday due to a mix of technical and fundamental factors.
Oversold bounce in top crypto market assets
On June 17, the crypto market capitalization increased by more than 2% to $1.05 trillion, up almost 7.5% from the low of $975.25 billion seen two days earlier.
Bitcoin (BTC), which now comprises nearly 50% of the crypto market, rebounded 8.5% from its June 15 low of $24,750.
Meanwhile, the second largest cryptocurrency Ether (ETH) has gained over 9% in the last two days. Last week’s worst performers, Solana (SOL), Cardano (ADA) and Polygon (MATIC) also recovered 8-15% over the same period.
Interestingly, the crypto market cap began to recover a day after its daily Relative Strength Index (RSI) dropped to around 30, indicating its almost “oversold”.
From a technical perspective, an oversold RSI signals a price recovery or consolidation, as shown below.
BlackRock’s Bitcoin ETF Buzz
Apart from the tech boom, growing speculation around the first bitcoin ETF approval in the US helped the crypto market boom.
Notably, BlackRock, an investment firm that manages $9.5 trillion in assets, applied to the US Securities and Exchange Commission (SEC) for a bitcoin ETF on July 16. In its entire history, the company has applied for 576 ETFs, facing only one rejection.
The crypto market is up 4.5% since the BlackRock application with market analyst Lark Davis Prediction With SEC approval, the asset manager can buy every single bitcoin available on crypto exchanges.
Excerpts from Davis’ statement:
“About 10% of all bitcoin ($50 billion worth) is sitting on exchanges. 0.5% of the BlackRock money going into BTC will buy every single coin available.”
Related: Bitcoin Price Sees $26K ‘Acceleration’ Zone as Binance Fears Fade
Nonetheless, the SEC has rejected all bitcoin ETF applications, including those from asset managers such as VanEck, Arc Invest and Bitwise.
Crypto market outlook for H2 2023
From a technical perspective, the crypto market appears to be in a bull flag pattern since April 2023, raising prospects for continuing its recovery trend towards $1.37 trillion in the second half of 2023 – up 35% from current valuation.
Conversely, the bears will attempt to push the market cap below the lower trend line of the bull flag, risking invalidating the bullish setup completely.
In this bearish scenario, the crypto market will fall towards the next major support at $875.50 billion, which is an important level from the June-November 2022 and March 2023 sessions.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should do your own research when making a decision.
