The crypto market is continuing its gains from Friday, due to a combination of technical and fundamental factors, and is currently doing well.
Oversold bounce across top crypto market assets
On June 17, the capitalization of the crypto market experienced a rise of more than 2%, reaching a total of $1.05 trillion – an increase of almost 7.5% from the $975.25 billion low observed two days prior.
Bitcoin (BTC) has experienced a rebound of 8.5% from its June 15 low of $24,750, now making up almost 50% of the cryptocurrency market.
Meanwhile, Ether (ETH), the second-largest cryptocurrency, has seen an increase of 9% in the last two days. The three worst performers from last week, Solana (SOL), Cardano (ADA), and Polygon (MATIC), have also risen 8-15% in the same period.
The crypto market cap began to rebound the day after the daily relative strength index (RSI) reading nearly reached 30, suggesting it had become “oversold.”
From a technical standpoint, when the RSI is oversold, it can lead to a price recovery or a period of consolidation, as demonstrated below.
Blackrock’s Bitcoin ETF buzz
In addition to the technical rebound, increased speculation concerning the potential approval of the first Bitcoin ETF in the United States gave a lift to the cryptocurrency market.
Notably, BlackRock, an investment firm that has oversight of $9.5 trillion in assets, submitted an application to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin ETF on July 16. Out of the 576 ETFs that BlackRock has applied for in the past, only one has been denied.
The crypto market has increased by 4.5% since the BlackRock application, and market analyst Lark Davis believes that if the SEC gives their approval, the asset manager could potentially buy all of the Bitcoin available on crypto exchanges.
Excerpts from Davis’s declaration:
The Bitcoin price is looking to break into the $26K “acceleration” zone as worries about Binance subside.
Despite this, the SEC has declined all Bitcoin ETF applications, including those from asset managers such as VanEck, Ark Invest, and Bitwise.
Crypto market outlook for H2 2023
From a technical point of view, the crypto market has been fluctuating within a bull flag pattern since April of 2023, indicating the potential for the market to continue its upward trend to a value of $1.37 trillion by the latter half of 2023 – a rise of 35% from its current value.
In contrast, bears may try to drive the market cap below the lower trendline of the bull flag, potentially rendering the bullish setup invalid.
In the event of a bear market, the crypto market could fall to the significant support level of $875.50 billion, which was a pivotal point in the June-November 2022 and March 2023 periods.
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