BTC Bulls to Retarget $32,500 on Bitcoin Spot ETF Optimism

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Updated: Jul 1, 2023, 00:53 GMT+00:00

It was a bearish end to the month for BTC. However, ETF-related news remains bullish following the approval of the leveraged BTC ETF.

Key Insights:

On Friday, BTC gave up early gains to end the day down 0.22% to $30,466.
News of the SEC calling recent spot BTC ETF filings inadequate left BTC trailing the broader market.
However, the technical indicators remain bullish, signaling a return to $32,500.

On Friday, bitcoin (BTC) fell by 0.22%. Partially reversing a rose 1.16% gain from Thursday, BTC ended the month up 11.66% to $30,466. Despite the bearish session, BTC revisited the $31,000 handle before hitting reverse.

A bullish start to the day saw BTC rise to an early morning high of $31,291. BTC briefly broke through the First Major Resistance Level (R1) at $30,882 and the Second Major Resistance Level (R2) at $31,232 before hitting the reverse.

The reversal saw BTC slide to an early afternoon low of $29,623. BTC fell through the First Major Support Level (S1) at $30,158 and the Second Major Support Level (S2) at $29,784 before a partial recovery to end the day at $30,466.

ETF-Related News Delivered a Choppy End to the Month

It was a busy Friday, with US economic indicators and the crypto news wires providing direction.

Bullish sentiment toward the latest spot BTC exchange-traded fund filings supported a breakout start to the day. Hopes of an influx of sticky institutional money led to a brief return to the $31,000 handle.

However, news of the SEC calling the spot BTC ETF filings inadequate sent BTC to sub-$30,000 before a late recovery. Significantly, the SEC did not decline the latest spot BTC ETF applications, which limited the damage.

US economic indicators also delivered late support, with US economic indicators suggesting a near-term end to the Fed’s monetary policy tightening cycle.

While BTC struggled on Friday, the latest US inflation figures supported a bullish end to the month for the NASDAQ Composite Index. The NASDAQ gained 2.19% on Friday to end H1 2023 up 31.7%. BTC gained 84.54% in H1 2023.

The Day Ahead

It is a quiet Saturday session, with no US economic indicators for investors to consider. The lack of external market forces will leave BTC in the hands of the crypto news wires.

ETF-related news will continue to draw interest as the race tightens to deliver a spot BTC ETF.

However, investors should monitor the crypto news wires for SEC v Ripple chatter. Coinbase (COIN) and Binance-related news will need continued monitoring.

Bitcoin (BTC) Price Action

This morning, BTC was up 0.04% to $30,479. A range-bound start to the day saw BTC rise to an early high of $30,501 before easing back.

BTCUSD 010723 Daily Chart

BTC Technical Indicators

Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bullish signals. BTC sat above the 50-day EMA ($30,149). The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, sending bullish signals.

A hold above the 50-day EMA ($30,149) would support a move through R1 ($31,297) to give the bulls a run at R2 ($32,128) and $32,500. However, a fall through the 50-day EMA ($30,149) would bring S1 ($29,629) and the 100-day EMA ($29,296) into view. A fall through the 50-day EMA would send a bearish signal.

BTCUSD 010723 4 Hourly Chart

Resistance & Support Levels

R1 – $	31,297	S1 – $	29,629
R2 – $	32,128	S2 – $	28,792
R3 – $	33,796	S3 – $	27,124

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.