At press time, BTC was tradingSponsored Product at $25,590 and has thus reclaimed two extremely important price levels for the moment:
- The Bitcoin price has once again risen above the 200-day Exponential Moving Average (EMA) currently at $25,299
- The price is now also back above the 200-week EMA at $25,304 (with the weekly close becoming of crucial importance)
As always, there are several narratives for yesterday’s rise in price.
The most obvious narrative and currently the biggest topic in the market is the Bitcoin spot ETF filing by BlackRock with the US Securities and Exchange Commission (SEC).
A spot ETF is seen as a holy grail that could finally open floodgates for institutional liquidity.
Reasons For The Bitcoin Rally
BlackRock is believed to have a strong chance of getting the first spot-based Bitcoin ETF approved by SEC due to its political influence and network.
New capital inflows made possible may have potential to be next bull run catalyst according to many experts.
However, several reasons play role in bitcoin’s movement.
One issue not neglected should be macro situation & US dollar index(DXY)
The latter saw setback last three days falling from 104.70 to currently 102.21
This likely favored BTC for now.
As for macro situation, Wednesday’s interest rate decision by US Federal Reserve (Fed) certainly still plays role.
Main story is market not buying Fed Chair Jerome Powell’s hawkish stance.
Analysts believe two more rate hikes announced in dot plot are a feint to prevent bullish breakout in financial markets.
Finally, BTC decoupling from S&P500 also seen recent days.
Yesterday’s move could have been start of catch-up rally where BTC shakes off unnecessary losses caused by Tether FUD and SEC lawsuits against Coinbase & Binance US.
In addition Bitcoin hodlers continue show historically high conviction.
Total BTC inflow across all exchanges currently at low suggesting Bitcoin holders no hurry sell their coins.
NewsBTC reported yesterday’s Tether FUD may also once again marked bottom for bitcoin.
Within last bear market there already been three de-pegging events of stablecoins marking local bottom.
At press time, btc changed hands for $25,590
Featured image from iStock, chart from TradingView.com