Fundamental analysis of BTC/USDT
The BTC/USDT pair has recently made a noticeable movement: during the week bitcoin rose by 15% and closed at $30.4 thousand. This positive movement is due to several factors. The total cryptocurrency market increased 10.8% to $1.184 billion, and Ethereum also rose 9.5%. While the major altcoins are posting mixed results, bitcoin has pushed back from its early June highs to around $31,400.
One factor in bitcoin's recovery is the optimism surrounding the possible launch of a Bitcoin Spot ETF. The market believes that such ETFs make bitcoin more accessible to institutional capital. U.S. asset manager BlackRock is one of the major players to join the Spot Bitcoin ETF, which tracks the price in the bitcoin market. This accession has had a positive effect on the market.
Technical factors are also playing a role in the recent uptrend. The BTCUSD pair overcame the resistance of the 50-day moving average and consolidated above the upper boundary of the descending channel. A rebound from the 200-week moving average is also an important bullish signal. The market should stabilize in the near term, but the general forecast is that bitcoin is likely to reach $34,500 within a month.
According to experts, the cryptocurrency market is entering a new bullish cycle, bitcoin could replace gold as a store of value, rising interest rates in major economies could benefit bitcoin. Another fundamental factor affecting Bitcoin's growth is the small size of the market. Market depth refers to the ability of the market to absorb large buy or sell orders without significantly affecting the price. Bitcoin's market depth has shrunk by 20% since the beginning of the year due to regulatory scrutiny by U.S. authorities and lawsuits against major exchanges.
This lack of liquidity is partly responsible for large price swings, as large orders lead to large price swings. Notably, bitcoin's daily trading volume is currently around $24 billion, well below the cryptocurrency's peak in 2021. Historically, bitcoin price dynamics have been driven first by institutional investors and then by individual investors. Currently, however, individual investors are not showing the same level of participation. Overall, Bitcoin's recent bullish rise is a result of optimism, technical factors and little depth in the Bitcoin spot ETF market. Experts believe we are in the early stages of a new bull cycle, although the market may need a short-term stabilization.
Technical analysis and scenarios:
Basic Scenario (SELL).
Recommended entry level: 28800.00.
Take Profit: 27900.00.
Stop Loss: 29500.00.
Alternative scenario (BUY)
Recommended entry level: 31120.00.
Take Profit: 34000.00.
Stop Loss: 30500.00.