Bitcoin Breaks Gains, Establishes Strong Support
The price of Bitcoin has experienced a significant increase of over 16% in the past week, marking a notable milestone. This level of growth has not been seen since March, following the fall of Silicon Valley Bank, and the first week of this year. The price successfully tested the $30,000 barrier and broke through it, leading to speculation about whether this boundary can now be considered a new support level.
One of the key factors driving the price growth this week is believed to be the filing of Bitcoin ETFs with the Securities and Exchange Commission (SEC). While no official comments have been made regarding these filings, any potential approval is not expected until early next year at the earliest. This raises concerns about the possibility of an artificially driven price surge fueled by the fear of missing out (FOMO) effect. It is anticipated that once investors have sobered up, a decline in the price may follow.
However, professional traders hold a different perspective. They believe that there is an accumulation of tokens taking place before the market is opened to institutional investors. This suggests that the current price growth may be more sustainable than initially thought.
Another indicator of market sentiment is the cryptocurrency derivatives market, which is frequently used by professional traders. Analysis of leveraged long positions reveals an increasing demand, with the premium on futures contracts rising from 3.2% to 4.3% within a week. Although this increase is significant, it still remains below the neutral limit of 5%.
Additionally, the 30-day Bitcoin options show a reversal of the skewness metric (25% delta skew). On June 16, it was still in the fear zone, but during the week, it dropped as low as negative 8%. This level is typically considered a neutral or slightly greedy sentiment.
In conclusion, the overall sentiment in the market of professional traders remains neutral. This is seen as a positive sign for the price of Bitcoin, indicating that investors do not anticipate an imminent price drop and are willing to wait. The $30,000 level could now serve as a strong support level for the cryptocurrency, potentially leading to a period of stability. However, it is important to note that external factors, such as negative news regarding the lawsuit between Binance.US and the SEC, could still impact the market dynamics.
Does Bitcoin’s successful test and surpassing of the $30,000 barrier indicate that it can now be considered a strong support level
The price of Bitcoin has surged by more than 16% in the last week, signaling a major breakthrough. This level of growth has not been witnessed since March when Silicon Valley Bank collapsed. Bitcoin successfully tested and surpassed the $30,000 barrier, raising speculation about whether this level can now be considered a strong support level.
A significant contributing factor to the price surge is believed to be the recent filing made for Bitcoin.
