The Crypto Daily – Are the Bulls about to Hit Back?The Bitcoin bulls will be eyeing a return to $8,000 to signal a buy. Expect the broader market to track a Bitcoin rebound…
After some impressive gains last week, it’s been a bearish start to the week. With the exception of Binance, which managed to close out in the green on Monday, its been red across the board.
While some of the reversal can be attributed to the latest SEC delay on pending Bitcoin ETF applications, profit taking is likely to have had more of an impact at the start of the week.
Interestingly, market sensitivity to the pending SEC decision on the Bitcoin ETF applications has significantly diminished.
The news wires and regulators, in general, have been more crypto friendly of late. Coupled with increased adoption, sentiment across the broader market has certainly improved since last year.
This can be evidenced by a material increase in 24-hour volumes in recent months. 24-hour trading volumes have risen from $12bn levels back at the start of the year to $80bn levels this morning.
An upward trend across the broader market has led to volumes easing back from a current year high $103.09bn hit on 16th May.
Supported by sidelined investors returning to the fold, the total crypto market cap has also seen a sizeable increase. Sitting shy of a current year high $262.11bn, a current total market cap of $244bn sits well above the start of a year $125.71bn.
At the turn of the year, the need for the SEC to approve the pending Bitcoin ETFs was far greater than at present.
Optimism over an eventual approval of at least a handful will continue to provide support to Bitcoin and the broader market, however.
The prospects of a material inflow of institutional money would certainly be positive.
An issue, however, could be the impact on inflows should Bitcoin have already broken through $10,000 levels.
Following the bearish start to the week, the majors are back in the red this morning.
At the time of writing, leading the way down was Binance Coin, down by 3.78%. The early losses came off the back of a trend-bucking gain on Monday and a new swing hi $32.99 struck on Sunday.
For the rest of the pack, while it has been a bearish morning, the majors have come off early lows. A bottoming out would be supportive of a possible recovery later in the day.
For the Day Ahead,
It’ll be all eyes on Bitcoin. A move back through to $8,000 levels later in the morning could signal a market rebound.
The bulls could take the reins should the broader market see the losses ease going into the afternoon.
As crypto volatility has picked up, the swings have certainly increased. The increased vol has given investors a greater incentive to jump back in on the rise.
It may not be quite ready for the SEC, but the Bitcoin bulls will be looking for an entry price. An afternoon rally could be on the cards for the broader market if Bitcoin recovers to $8,000.