Bitcoin is currently approaching its highest levels of the year, which it has struggled to surpass until now. Despite several attempts by bears to bring the price down, Bitcoin seems to be gaining bullish momentum.
After breaking through the high of June, the next significant resistance level lies at approximately $32,500. If this level is breached, it could open the floodgates for a potential surge towards $38,000. To capitalize on the current strength, the bulls need to push Bitcoin higher. However, failure to do so may result in a retracement towards $28,000, maintaining the current range.
SEC's Response to ETF Applications
The recent influx of spot Bitcoin ETF applications by major financial players like BlackRock and Fidelity was met with skepticism by the Securities and Exchange Commission (SEC). The SEC described the applications as "inadequate," causing a temporary disruption in the market. This initial negative reaction led to a 5% price drop, but it was quickly absorbed by bullish investors, resulting in a near-complete reversal of the decline. Bitcoin has now returned to its pre-announcement level and appears to favor an upward movement.
Further clarification from the SEC revealed that applicants must specify the exchange they intend to use, with BlackRock indicating Coinbase as its exchange partner.
Bitcoin Halving Countdown
Reserve Risk Analysis
The reserve risk tool heavily considers the actions of long-term Bitcoin holders in its calculations. As these holders often possess a deeper understanding of market cycles and optimal buying times, their confidence levels play a significant role. The tool also incorporates the concept of HODL bank, which helps define opportunity cost.
In terms of risk and reward, when Bitcoin's price is high and confidence is low, it becomes an unattractive proposition. Conversely, when the price is low and confidence is high, it becomes an attractive opportunity. The reserve risk data is displayed at the bottom of the chart in the form of an oscillator. The green zone indicates a favorable risk-to-reward opportunity, while the red zone suggests the opposite.
Historically, buying Bitcoin in the green zone has yielded substantial returns. At present, the reserve risk remains within the green zone, indicating a promising risk-to-reward opportunity for Bitcoin investors.
Bitcoin Fear & Greed Index
The Fear & Greed Index currently registers a score of 64, reflecting a state of greed. Given that Bitcoin has held the important $30,000 level, this sentiment is expected. Bulls are striving to maintain the price above this level, while bears aim to push it lower. Throughout this month, the fear and greed index has been on an upward trend, starting at a low of 46 on June 15. As long as the price remains above $30,000, the index is likely to remain in the greed zone until it stabilizes and establishes a new neutral point.
Considering the recent news of the SEC's assessment of spot Bitcoin ETF filings as "inadequate," it is noteworthy that there was no significant panic or fear that caused a substantial drop in both the price and the index. Overall, Bitcoin investors appear to be optimistic.