BTC Bulls Need to Crack Resistance at $31,500 with ETF Approvals

Key Insights:

• On Tuesday, BTC fell by 1.15% to end the day at $30,867. 
• A quiet Fourth of July left BTC on the back foot as investors await decisions on the ETF applications.
• However, the technical indicators remain bullish, signaling a return to $32,500.

On Tuesday, bitcoin (BTC) fell by 1.15%. Partially reversing a 1.94% gain from Monday, BTC ended the day at $30,867. Despite the bearish session, BTC avoided sub-$30,500 for the second consecutive session.

A bullish start to the day saw BTC rise to an early morning high of $31,391. The early move saw BTC break through the upper resistance level of the $30,750 – $31,250 resistance band. However, a bearish afternoon session saw BTC fall to an early evening low of $30,710. BTC found support at the lower level of the $30,750 – $31,250 resistance band to end the day at $30,867.

Bitcoin Price Action

This morning, BTC was up 0.16% to $30,917. A mixed start to the day saw BTC fall to an early low of $30,843 before finding support.

Daily Chart

The Daily Chart showed a BTC/USD fall below the psychological $31,000 support level as investors await SEC decisions on the ETF filings. However, BTC/USD remained above the 200-day ($26,146) and 50-day ($28,620) EMAs, signaling bullish momentum over the near and long term.

Notably, the 50-day EMA continued to pull away from the 200-day EMA and reflected bullish momentum.

Looking at the 14-Daily RSI, the 65.94 reading signaled a bullish outlook and aligned with the 50-day and 200-day EMAs, supporting another breakout from the higher level of the $30,750 – $31,250 resistance band.

4-Hourly Chart

Looking at the 4-Hourly Chart, the BTC/USD faces strong resistance at the $31,500 psychological level. BTC/USD continued to sit above the 200-day ($28,962) and 50-day ($30,594) EMAs. Significantly, the 50-day EMA pulled further away from the 200-day EMA, signaling another test of the higher level of the $30,750 – $31,250 resistance band.

BTC/USD would avoid the 50-day EMA to break out from $31,500 and target $32,000.

The 14-4H RSI reading of 52.2 indicates a bullish stance and aligns with the EMAs, with buying pressure outweighing selling pressure. Significantly, the RSI signals near-term bullish momentum and a breakout from $31,500.

Apprehension Leaves BTC on the Back Foot

It was a quiet Tuesday session, with the US markets closed for the Fourth of July holiday. The lack of crypto events and external market forces left investors to assess the likelihood of the SEC approving the spot ETF applications.

With uncertainty ever present, profit takers likely contributed to the afternoon reversal and the session loss.

There were no SEC v Ripple-case-related updates or Binance news to spook investors.

The Day Ahead

It is a quiet Wednesday session, with the US economic calendar unlikely to influence. However, recessionary jitters and hawkish central bank chatter would be bearish.

With activity likely to be on the light side, investors should monitor the crypto news wires. ETF, Binance, and SEC v Ripple-related news will be focal points.