The Bitcoin Spot Exchange-Traded Fund (ETF) has been a significant catalyst in the recent bullish rally that saw Bitcoin’s price touch near the $31,000 mark. However, the recent turmoil near $30K in Bitcoin’s price has raised questions about the sustainability of its uptrend. The pump led by the Spot ETF applications, which had previously fueled the bullish rally, appears to be fading. Bitcoin is currently facing a lack of buying pressure to initiate a further surge above $31K.
Bulls Prepare For A Correction
The performance of Bitcoin’s price had made a notable impression just a day prior, with the leading cryptocurrency revisiting the $30,000 threshold for the first time since mid-April.
Now, anticipation is growing for a potential minor correction to follow. This could pave the way for profitable entry points for additional long positions. According to a prominent crypto analyst, Michael van de Poppe, founder and CEO of trading firm Eight,
“I think, $28.500 is a great spot for longing, the lower the better, but I think that’s the zone where you want to get it before we’ll continue to $40,000.”
From this point, Bitcoin’s price mainly depends on the approval of spot ETF as the SEC looks to create a roadblock, which may plunge the BTC price in the upcoming days. According to trading firm QCP Capital, the likelihood of Bitcoin having its first spot price exchange-traded fund (ETF) in the United States anytime soon appears to be low.
Despite the inevitable rise of institutional participation in the Bitcoin arena, QCP suggests that the current composition of the SEC makes the approval of spot ETFs less likely.
The situation is further complicated by the current SEC Chair, Gary Gensler. Under his leadership, the regulatory body has initiated lawsuits against major cryptocurrency exchanges like Binance and Coinbase. QCP expressed their lack of confidence in the near-term approval of the ETF, given Gensler’s current leadership of the SEC.
Bitcoin Consolidates Near $30K, What’s Next?
Despite Bitcoin’s successful breach of the $30K threshold, the bears are currently stirring up chaos as the BTC price struggles to rise above $31K and even struggles to maintain momentum above the $30K mark. As of writing, BTC price trades at $30,020, experiencing a minor increase of 0.8% in the last 24 hours.
However, the bears are not expected to back down easily. They will likely attempt to stall the rally at $31,000. But if the bulls manage to hold their position, it could increase the chances of a rally surpassing the overhead resistance. If this occurs, the Bitcoin price could potentially climb to $32,421. The bears will likely put up a strong fight at this level because if they fail to hold it, the price could skyrocket to $40,000.
For the bears to trap the bulls, they would need to pull the price back below the EMA20. This could lead to a long liquidation and put the $26.8K-$27.4K support on the horizon.