Bitcoin (BTC) staged a second strong rebound from support in the $30,000 region late Wednesday evening, with bulls currently still in control.
The world’s largest cryptocurrency by market value last traded around $30,500, within this week’s range as support from the late April/early May highs of $30,000 continues to hold firm.
Bitcoin is coming off a strong month, with gains for June now sitting at around 12%.
It’s an impressive recovery after Bitcoin was trading below $25,000 just two weeks ago amid concerns about the Securities and Exchange Commission (SEC) taking an increasingly aggressive stance toward the U.S. cryptocurrency industry.
The agency announced new lawsuits against Coinbase and Binance earlier this month, the latest major move in its quest to bring “compliance” to the crypto industry through law enforcement.
News that BlackRock, the world's largest asset manager, has applied for a spot Bitcoin ETF has spurred a strong recovery for Bitcoin from its earlier monthly lows, with experts believing the ETF has a good chance of being approved.
A host of other major financial institutions have followed BlackRock’s lead, with big names like Fidelity also applying for spot ETFs.
If a spot Bitcoin ETF is approved, this should bring a large amount of sidelined institutional capital into the Bitcoin market, significantly boosting demand.
Bitcoin (BTC) Price Prediction – Time to Buy?
Bitcoin price predictions remain optimistic for several reasons.
First, the optimism surrounding a spot Bitcoin ETF and “institutional adoption” is unlikely to fade anytime soon.
Additionally, Bitcoin remains resilient to macro headwinds, such as rising U.S. bond yields, as bets on a tightening Federal Reserve increase after U.S. economic data showed stronger-than-expected growth.
Bitcoin also tends to perform well in July, having posted double-digit percentage gains for three consecutive years that month.
The technical picture also supports continued gains.
Bitcoin’s strong rebound from earlier monthly lows confirms the uptrend into 2023, and the 200-day moving average remains a strong support.
The bulls are hoping that BTC will soon break above the recent high of $31,000 and continue advancing towards the major resistance levels in the $32,500, $33,000, and $34,000 zones.
For those looking for an asset that could deliver solid short-term gains, Bitcoin could be a good option.
But with the cryptocurrency still down 55% from its 2021 all-time high in the $69,000 region, Bitcoin may be better viewed as a long-term asset worth buying and holding.
If the asset is in the early stages of a new bull run, and if the new bull run does indeed take Bitcoin to 3-4x its previous all-time highs in the next few years (as is likely to happen in 2021), then Bitcoin could eventually reach over $100,000.
For investors who buy now, this could mean a 5-6x gain.