Bitcoin (BTC) experienced a surge to new highs in 2023 on July 6 as it bounced off key support, defying analysts’ predictions. Data from Cointelegraph Markets Pro and TradingView revealed that BTC price action surged above the upper limit of its recent trading range. Analysts had previously anticipated a further drop in the largest cryptocurrency, with a potential reach of $28,000, providing a classic “buy the dip” opportunity. However, the momentum shifted upward, leading to optimism among traders.
Optimism and Caution Among Traders
Michaël van de Poppe, founder and CEO of trading firm Eight, expressed optimism, encouraging his Twitter followers to take advantage of the current market conditions. He anticipated a gradual continuation of the upward trend and emphasized the importance of breaking and flipping the $30.8K resistance level, which could result in fast upward momentum. Similarly, a retest of the $30.3K level would present a favorable opportunity for long positions.
On the other hand, financial commentator Tedtalksmacro issued a note of caution, highlighting the potential influence of derivatives traders on short-term market direction. While acknowledging the current surge, he advised traders to proceed with caution and consider the impact of these traders on the market.
Bitcoin’s Consolidation and Bullish Signs
Despite the uncertainty, popular trader John Wick reassured investors that the extended consolidation near yearly highs should not be a cause for concern. Meanwhile, analytics account PlanC expressed hope that the ongoing phase would favor the bulls. One key factor in this analysis was Bitcoin’s two-year exponential moving average (EMA), which currently stands at $28,500. Staying above this level has historically been seen as a bullish sign. In the past, all previous cycle lows occurred when BTC was 45% to 55% below the 2-year EMA, which has already been surpassed.
BlackRock’s CEO Recognizes Bitcoin’s Potential
The surge in Bitcoin’s price coincided with Larry Fink, CEO of BlackRock, the largest global asset manager, recognizing Bitcoin as an “international asset” and listing several advantages during a live interview. BlackRock recently refiled its application with regulators to launch the United States’ first Bitcoin spot-price exchange-traded fund (ETF). This move by BlackRock further reinforces the growing acceptance and recognition of Bitcoin as a legitimate asset class.
Bitcoin’s recent surge to new highs in 2023 defied analysts’ predictions of a further drop. The market sentiment remains cautiously optimistic, with traders expressing both optimism and caution. The ongoing consolidation near yearly highs is seen as a positive sign, and Bitcoin’s two-year exponential moving average is being closely monitored as a bullish indicator. Additionally, the recognition and acceptance of Bitcoin by major financial institutions, such as BlackRock, further validate its status as a significant international asset.
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