BTC Bulls to Target $30,000 for the First Time Since Early May

Key Insights:

• On Tuesday, BTC retook the $28,000 handle, rising 5.47% to end the day at $28,326.
• SEC scrutiny and regulatory risk took a back seat for a second session, with rising hopes of the Blackrock ETF launch, Deutsche Bank, and EDX Markets delivering support.
• The technical indicators remained bullish, signaling a return to $30,000.

On Tuesday, bitcoin (BTC) rallied by 5.47%. Following a 1.90% gain on Monday, BTC ended the day at $28,326. Significantly, BTC wrapped up the day at $28,000 for the first time since May 28.

After a range-bound morning, BTC fell to an early afternoon low of $26,855. Steering clear of the First Major Support Level (S1) at $26,408, BTC surged to a late-session high of $28,363. BTC broke through the Major Resistance Levels to end the day at $28,326.

Institutional Investor Interest in Blackrock Bitcoin ETF Delivers Support

It was a quiet Tuesday, with US housing sector indicators having no impact on investor sentiment.

The lack of economic indicators left investors to continue considering the prospects of a Blackrock (BLK) ETF launch and the likely influx of sticky institutional money.

Blackrock (BLK) filed the necessary documentation with the SEC to launch the iShares Bitcoin Trust on June 15, with market participants hopeful of a swift SEC approval.

Bitcoin whales reflected a bullish outlook, with accumulations reportedly hitting 7-month highs. According to Santiment,

“Bitcoin whales have been busy while the crowd watched prices dwindle these past two months. Now back above $27k once again, it’s far from a coincidence that wallets holding 1k to 10k BTC have accumulated a combined $3.5 billion since the first week of April.”

News of German banking giant Deutsche Bank (DB) applying for a crypto custody license added support. The Deutsche Bank move follows the Fidelity, Citadel Securities, and Charles Schwab (SCHW) backing of EDX Markets. EDX Markets launched its digit asset arm on Tuesday.

Binance-related news failed to weigh on investor sentiment, with the EDX Markets non-custody model likely to find favor with US regulators.

The Day Ahead

It is a busy Wednesday session, with Fed Chair Powell delivering the first day of testimony on Capitol Hill. While hawkish chatter tends to weigh on BTC and the broader market, an optimistic economic outlook should be enough for crypto investors, with the markets pricing in a 5.6% peak Fed Funds Rate.

However, the SEC cases against Ripple, Binance, and Coinbase (COIN) remain the focal points.

Bitcoin (BTC) Price Action

This morning, BTC was down 0.11% to $28,296. A range-bound start to the day saw BTC rise to an early high of $28,337 before falling to a low of $28,296.

BTC Technical Indicators

Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bullish signals. BTC sat above the 200-day EMA ($26,702). The 50-day EMA crossed through the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, sending bullish signals.

A hold above the 200-day EMA ($26,702) would support a move through R1 ($28,903) to give the bulls a run at R2 ($29,479) and $30,000. However, a fall through S1 ($27,210) and the 200-day EMA ($26,702) would bring the 50-day ($26,554) and 100-day ($26,481) EMAs into view. A fall through the 50-day EMA would send a bearish signal.

Resistance & Support Levels

BTC needs to avoid the $27,786 pivot to target the First Major Resistance Level (R1) at $28,903. A move through the Tuesday high of $28,363 would signal an extended bullish session. The crypto news wires and Fed Chair Powell should be crypto-friendly to support an extended rally.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $29,479 and resistance at $30,000. The Third Major Resistance Level (R3) sits at $31,172.

A fall through the pivot would bring the First Major Support Level (S1) at $27,210 into play. However, barring a risk-off-fueled sell-off, BTC should avoid sub-$27,000 and the Second Major Support Level (S2) at $26,093. The Third Major Support Level (S3) sits at $24,400.