Is Bitcoin Ready to Skyrocket?

Key Takeaways:

• Some investors believe that Bitcoin is ready for the next bull run, as it has followed similar price patterns before previous surges.
• Binance has integrated the Bitcoin Lightning Network with its exchange, allowing users to deposit and withdraw Bitcoin tokens using the layer-2 scaling solution. This integration aims to avoid congestion and improve transaction efficiency.
• The U.S. SEC has accepted BlackRock’s application for a Bitcoin ETF after the asset manager fulfilled the necessary requirements. This move indicates that the SEC is taking the application seriously, and investors have high hopes for the approval of a Bitcoin ETF in the United States.

Bitcoin is continuously struggling to stay above $30,000 due to which many investors have become disappointed about further price increases. Still, there’s a group of investors and traders who are claiming that Bitcoin is ready for the next bull run. The investors say that it’s a deja vu kind of feeling because Bitcoin followed a similar price pattern before the previous bull runs.

The following Bitcoin weekly news may highlight some facts about how Bitcoin’s price may behave over the coming days.

Bitcoin may Again Retest the $31,000 Level

Following the success of the Ripple vs SEC case, Bitcoin experienced significant buying within a day. Similarly, other cryptocurrencies also displayed massive growth following the news. But Bitcoin couldn’t sustain longer and the price remained below $32,000 even after such positive news.

Bitcoin’s price declined sharply after reaching a high of around $31,790. The price even reached a low of $29,950 during this decline but it again recovered and regained the support of $30,000. Bitcoin’s immediate resistance is now between $30,300 to $30,400. The price may again display a bullish momentum if the resistance level is surpassed.

Bitcoin may eventually reach the $30,850 and $31,150 levels after breaking this resistance. However, if the price couldn’t surpass the resistance, it may lead to a downside correction.

Binance Finalizes Bitcoin Lightning Network Integration

Binance was working on integrating the Bitcoin Lightning Network with its exchange to allow users to deposit and withdraw Bitcoin tokens using the layer-2 scaling solution. Binance made an announcement about this integration last month and they have now integrated the lightning network with the system.

The users can simply perform the transactions by selecting the “BTC-Lightning”. Binance had to suspend BTC withdrawals due to congestion on the Bitcoin network. The exchange’s reputation was damaged because of this event therefore, they decided to integrate the Lightning Network to avoid such issues.

Other leading exchanges like OKX, Kraken, and Bitfinex also use this network for streamlined transactions. Binance is going to support 20 deposit addresses for each network. However, the quota will potentially increase in the future.

Toronto-based Purpose’s Bitcoin ETF

Many companies have filed for Bitcoin ETF with the Securities and Exchange Commission. The retail investors gave an interesting response after hearing about BlackRock’s ETF application. The investors have become more enthusiastic after hearing the Toronto-based Purpose’s Bitcoin ETF news.

The investors are feeling more confident that the U.S-based companies also have a better chance of getting approval. However, Purpose’s ETF is going to have an advantage for being the first move in the Bitcoin ETF market. But it won’t be a winner-take-all kind of situation because the competition is expected to increase in this market. So, the upcoming will ETFs will also obtain a fair share of the investments.

SEC Accepts BlackRock’s Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) previously asked BlackRock to fulfill some requirements before submitting the application. The asset manager has now fulfilled those requirements due to which SEC has finally accepted the application. Crypto enthusiasts previously criticized the SEC for not accepting the application.

But the recent move shows that SEC is taking this application seriously. BlackRock’s application holds amazing importance because it came during the time while SEC is carrying out a crackdown on crypto platforms.

Other organizations like Wistom Tree, Fidelity, Vaneck, Bitwise, and Invesco have also filed applications for Bitcoin ETFs. Investors have high hopes about the approval of a Bitcoin ETF in the United States because SEC has accepted multiple applications recently. It’s also worth noting that Europe is going to list its first Bitcoin ETF by the end of July. The rising adoption can trigger significant price increases over time.

How Ripple’s Legal Win May Affect the Crypto Market?

The effects of the recent favorable decision in the SEC vs. Ripple case were observed on Thursday when Bitcoin’s price increased by 3.5%. And other cryptocurrencies also showed significant increases in their prices. However, the effects couldn’t sustain long and the price dropped right on the next day.

A former SEC official has claimed that the ruling will potentially be reversed in the future. This kind of sentiment might have triggered the selling on Friday. But signs of bearish momentum are weakening as Bitcoin has found support around $30,000.

Bitcoin Weekly Technical Analysis

It was discussed in last week’s Bitcoin technical analysis that Bitcoin won’t show any significant price increase unless the volumes start adding up. Although the price increased slightly on Thursday, the volumes were still very low. That’s why the price couldn’t sustain. However, the good part is that volumes don’t increase even during the selling pressure.

The 4-hour technical chart of Bitcoin shows a parallel channel where the price struggles when moving towards the upper end of the channel while it drops quickly while moving downwards. It again indicates that sellers are currently trying to take control of the situation. However, the buyers are also trying to hold above the $30,000 level because it’s crucial support for Bitcoin.

Conclusion

Bitcoin’s price remains in a critical range of around $30,000, with the possibility of retesting the $31,000 level. The integration of the Lightning Network by Binance and the acceptance of BlackRock’s Bitcoin ETF application by the SEC reflect positive developments for the cryptocurrency market.

However, concerns persist, such as the potential reversal of the SEC vs. Ripple ruling and the need for increased trading volumes to sustain significant price increases. If you need regular updates about Bitcoin and the crypto market, we invite you to subscribe to our weekly newsletter.