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BTC/USD: Waiting for the update of the annual maximum above 31443.00

4 July 2023, 16:34

Yuri Papshev

114

The rapid growth of the interest of large corporations in cryptocurrencies may also be due to expectations of their approval by the world's regulatory authorities as a means of payment.

So, after the Fed meeting ended on June 14, its head Powell announced the need for the Fed to get involved in the regulation of the stablecoin market, which he called “a form of money”, and not securities. If the Fed approves stablecoins as a means of payment, then they will become a real alternative to fiat money.

From media reports at the end of last month, it also became known that BlackRock, the largest US asset management company, filed an application with the SEC to create a spot bitcoin ETF. After these messages, trading volumes on the crypto market began to grow and at the beginning of last week they already amounted to $19.5 billion.

After the final breakout of the resistance levels of 30800.00, 31000.00 and the breakdown of the last week's high of 31443.00, we should expect further growth of BTC/USD towards the local maximum in 2022 of 48184.00, and then in 2021 and the mark of 69138.00.

Of the negative moments for the crypto market, it is worth noting the ongoing pressure from the Securities and Exchange Commission (SEC) on the leading digital platforms Binance and Coinbase, which is also spreading in European countries.

At the end of last month, it was also reported that US President Joe Biden promised to reform the tax system, "eliminating loopholes for bitcoin and crypto traders." We are talking here, in particular, about the short-term trading operations of crypto traders who sell and redeem cryptocurrencies in a short time, which allows them to avoid higher tax rates.

In addition, speaking last week at the European Central Bank Forum, Fed Chairman Powell confirmed the possibility of further interest rate hikes, which could support the US dollar, including in relation to cryptocurrencies (in pairs with the USDT stablecoin).

Thus, despite the bullish mood of Bitcoin buyers, a somewhat contradictory situation has developed in the digital currency market, which does not allow Bitcoin and other popular altcoins to develop a more confident upward momentum.

In an alternative scenario, the breakdown of support levels 30470.00, 30000.00 may become a signal for the development of a downward correction and decline, for a start - to support levels 28850.00, 28500.00. With the further development of the negative dynamics, the breakdown of the key support levels 26000.00, 25400.00 will return BTC/USD into the zone of the long-term bear market.

Support levels: 30470.00, 30000.00, 29000.00, 28850.00, 28500.00, 28000.00, 27000.00, 26700.00, 26000.00, 25400.00, 24760.00

Resistance levels: 31000.00, 31443.00, 35000.00, 46000.00, 47000.00, 48000.00