The Bitcoin price rally appears to have stalled as it struggles to breach the resistance at $31,000, mainly due to market uncertainty. Despite recent attempts to increase the price, buying pressure remains insufficient to push the coin further.
Michael van de Poppe, CEO and founder of Eight Global, a European crypto consultant firm, suggested that the recent price behavior resembles a leverage crunch. He explained, “Bitcoin had a leverage crunch in the past 24 hours, taking out all the highs & going back to the start in one go”.
The cryptocurrency’s recent surge resulted from BlackRock and several other companies submitting Bitcoin spot ETF filings, sparking optimism amongst investors. However, the bullish sentiment faltered when the US SEC filed lawsuits against the crypto exchanges Binance and Coinbase. Yet, at least temporarily, companies like BlackRock and Fidelity restored a sense of positivity.
Unfortunately, the glimmers of hope were dimmed when the SEC rejected the proposed filings, citing a lack of clarity. Nonetheless, BlackRock, the world’s largest asset manager, reacted promptly by making necessary adjustments and refiling the application, restoring buyer confidence.
Despite this, many market participants remain sceptical, suspecting that the SEC Chair, Gary Gensler, might find additional reasons to reject the proposal. Conversely, former SEC Chairman Jay Clayton remains optimistic about approving Bitcoin spot ETF, contending that it would be difficult to reject if the market efficacy is demonstrated.
Following a surge to $31,366 on July 6th, Bitcoin has been trading sideways, hovering near the $31,000 mark. Despite another minor surge on July 10th, Bitcoin’s price was again rejected, dropping to $30,220. Market watchers have noted Bitcoin’s resilience at the $30,000 support level, but its inability to progress further increases the likelihood of a potential breakdown of this support.
As of the time of writing, Bitcoin is down by 2% compared to yesterday’s high, currently trading at $30,529. Although it has managed to break past the $30.4k resistance, higher barriers prevent further progress.
