Bitcoin surges toward $30K from support, time to go long on BTC?

Bitcoin is currently attempting to be the star of the recovery show. In recent hours, Bitcoin has once again caught the attention of investors and traders as it sparked a renewed surge toward the $30,000 mark from a critical support level that it touched yesterday. This surge has left many questioning whether it is the right time to long Bitcoin’s price.

Bitcoin ETFs Keep Fueling The Bullish Momentum

As Bitcoin ETFs continue to surge in popularity, it attracts a diverse mix of investors. Recently, they have managed to uphold the bullish sentiment around Bitcoin by bringing increased institutional participation.

Recently, the U.S. SEC has begun reviewing applications from six firms, including BlackRock, to establish spot Bitcoin ETFs. Other firms include Bitwise, VanEck, WisdomTree, Fidelity, and Invesco, with all their proposals now listed in the Federal Register. This news has successfully prevented the BTC price from dropping heavily below the crucial support of $29.6K.

Since January 2023, the Bitcoin trust’s rising premium, which narrows the gap between the trust’s and Bitcoin’s market prices, illustrates growing investor optimism towards Bitcoin. Furthermore, observing the realized profit and loss of BTC holders, it showed Bitcoin’s shift from a phase of capitulation, indicating a market transition from extreme fear and sell-offs to a more stable state.

BlackRock’s venture into the Bitcoin ETF market could potentially be a game changer for Bitcoin and the crypto market. Charles Edwards, founder of Capriole Investments, believes that an approved BlackRock Bitcoin ETF could bring a surge of institutional investment and mark a significant endorsement. 

Given BlackRock’s striking 99.8% success rate with ETFs, their impact should not be underestimated. It’s worth recalling gold’s ETF debut in 2004, which triggered a massive 350% surge and a bull run that lasted for seven years!

Also Read: ProShares BITO ETF: A Close Contender to Bitcoin’s Spot Price Amid ‘Roll Cost’ Controversy

Bitcoin Touches The $30K Mark

Bitcoin’s value dipped under the 20-day exponential moving average (EMA) of $30,032 and visited the critical $29,500 support level. This indicates that despite lower levels, buyers are still drawn to the market as evidenced by the long tail on the day’s candlestick.

Buyers are longing the price heavily near the dip and the equilibrium between supply and demand is suggested by the flat 20-day EMA and the relative strength index (RSI) being close to the midpoint. If the price surpasses the 20-day EMA due to buying pressure, we could potentially see a rally to $30,615, and thereafter to $31,846. This zone is expected to be fiercely defended by sellers.

The commencement of the next trend could be triggered by either a surge beyond $32,500 or a descent beneath $29,500. If the range breaks downwards through $29,500, we could witness a drop of the price to $27,200 and possibly further down to $26,000. Conversely, if the bulls manage to send the price beyond $32,400, the pair could trigger a rally towards the $40,000 mark.