BTC Bulls to Retarget $32,000 on Spot ETF Approval Hopes

Bob Mason
Published: Jul 2, 2023, 03:42 GMT+00:00

It was a bearish start to the day, with no crypto news to influence BTC. The near-term focus will remain on ETFs and the SEC v Ripple case.

BTCUSD technical analysis - FX Empire

In this article:

Key Insights:

  • On Saturday, BTC enjoyed a bullish start to July, gaining 0.56% to end the day at $30,636.
  • US lawmaker chatter drew interest following the SEC’s response to the BTC ETF filings.
  • The technical indicators remain bullish, signaling a return to $32,500.

On Saturday, bitcoin (BTC) gained 0.56%. Reversing a 0.22% decline from Friday, BTC ended the day at $30,636. Despite the bullish session, BTC fell short of the $31,000 handle for the third time in four sessions.

A bearish start to the day saw BTC fall to an early morning low of $30,310. Steering clear of the First Major Support Level (S1) at $29,629, BTC rose to a mid-afternoon high of $30,734. However, falling short of the First Major Resistance Level (R1) at $31,297, BTC eased back to end the day at $30,636.

ETF-Related News Continued to Influence Investor Sentiment

It was a quiet start to the month, with no US economic indicators to consider as the US begins to celebrate the Fourth of July holidays.

As investors await the SEC response to the BTC ETF refilings, US lawmaker chatter dew interest this weekend.

US House Financial Services Committee Chairman Patrick McHenry sent SEC Chair Gary Gensler a public message on Twitter. Chairman McHenry had this to say,

“If these reports are accurate, Gary Gensler has a lot of explaining to do. An ETF would provide everyday investors with an SEC-regulated product. The only reason for Chair Gensler to oppose is if he wants to kill crypto in the US altogether.”

Earlier this month, Chairman McHenry responded to the Blackrock (BLK) spot ETF filing, saying,

“Your move Gary Gensler. The SEC must not pick winners and losers based on inconsistent factors. I’ll be watching this closely.”

SEC Chair Gensler remained silent on Twitter as investors eye the SEC’s next move on spot ETFs following the SEC approval of the Volatility Shares Trust 2x Bitcoin Strategy ETF.

While US lawmaker support for spot crypto ETFs is good news, both sides of the aisle will need to take a similar position to push through favorable legislation and limit the impact of the SEC on the digital asset space.

The Day Ahead

It is a quiet Sunday session. With no US economic indicators to consider, investors should continue to monitor the crypto news wires for events that can move the dial.

ETF-related news will garner interest, with regulated crypto products likely to draw new investors into the digital asset space.

However, investors should monitor the crypto news wires for SEC v Ripple chatter. Coinbase (COIN) and Binance-related news will need continued monitoring.

Bitcoin (BTC) Price Action

This morning, BTC was down 0.17% to $30,583. A mixed start to the day saw BTC rise to an early high of $30,701 before falling to a low of $30,500.

BTC sees early red.
BTCUSD 020723 Daily Chart

BTC Technical Indicators

Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bullish signals. BTC sat above the 50-day EMA ($30,243). The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, sending bullish signals.

A hold above S1 ($30,386) and the 50-day EMA ($30,243) would support a move through R1 ($30,810) to give the bulls a run at R2 ($30,984) and $31,000. However, a fall through S1 ($30,386) and the 50-day EMA ($30,243) would bring S2 ($30,136) into view. A fall through the 50-day EMA would send a bearish signal.

EMAs are bullish.
BTCUSD 020723 4 Hourly Chart

Resistance & Support Levels

R1 – $ 30,810 S1 – $ 30,386
R2 – $ 30,984 S2 – $ 30,136
R3 – $ 31,408 S3 – $ 29,712


About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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