Stabilizations in market phases that are not characterized by positivity provide long-term reinforcement and potential upswings. Long-term investment horizons of market participants reduce selling pressure in turbulent times, resulting in a shortage of available supply. Decreasing and market-strengthening volatility is thus an important factor for consolidation phases.
Thought of the week
Digital Asset News
The SEC continues to stay the course of rejecting “Bitcoin ETFs”. The new volatility was triggered first and foremost by the decision of the US Securities and Exchange Commission (SEC) to reject the many recently filed and amended applications for a “direct ETF” for BTC.
The applications were previously a key driver of Bitcoin’s climb, which even took the crypto market leader to a new high for the year.
The unconfirmed report from the Wall Street Journal is now causing exactly the opposite, as the Bitcoin price went slightly downhill after the news about the alleged rejections.
However, the report was far less dramatic in its tone, as the SEC’s alleged reasons for the rejections are more minor technical details, not fundamental matters.
For example, the WSJ writes that the “SEC advised applicants that the applications did not identify specific bitcoin crypto exchanges with which they had ‘joint oversight agreements’ for the respective markets.”
“Asset managers can supplement this information and then resubmit their applications,” it adds.
The US Bankruptcy Court for the Southern District of New York has approved bankrupt crypto lender Celsius Network’s plan to exchange its remaining altcoins for bitcoin and Ether to be exchanged.
The order was issued by Judge Martin Glenn, and the liquidations are intended to help return the assets in question to creditors as quickly as possible.
The proposal was officially approved following discussions between Celsius and the US Securities and Exchange Commission (SEC). According to the bankruptcy judge’s decision, the troubled lender is thus entitled to:
“sell or exchange for BTC or ETH all crypto assets, other than tokens associated with withhold or custody accounts, as of 1 July 2023.”
BTC still closed June very solidly or with significant gains despite a late slump, underpinning its current strength.
As the data confirm, the monthly close was at 30,465 US dollars. So far, this area can also be clearly defended over the weekend, with the previous month even being the strongest June since 2019 on balance.
A look at the past shows that, as is customary, July should actually be even better, as this month the bitcoin price has never lost more than 10% in its entire history.
However, expert CryptoBullet appeals to “common sense”, which should tell traders that BTC should fall below some key moving averages (MAs) next.
“June surprised me. We had a pretty strong close to the month: BTC tested the MA50, bounced strongly to the upside and was able to regain the EMA21!” as the analyst first notes.
“I repeat my forecast: BTC can climb to US$35,000 (to fetch liquidity), but in the medium term this climb will come to its end, probably already this month.”
As it were, the expert remains confident, arguing that even a downturn below the aforementioned price target would “not be a concern”.
“Overall, we are in a good position for further gains,” as Rekt Capital therefore sums up.
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