Fidelity prepares for a spot Bitcoin ETF filing while China’s central bank injects funds, impacting Bitcoin’s performance, and resistance at $31,000 suggests a potential price correction.
Important Points
- Financial giant Fidelity plans to submit a filing for a spot Bitcoin ETF, signaling potential institutional adoption.
- China’s central bank injecting funds may lead to increased Bitcoin acquisition by Chinese investors, impacting BTC’s performance.
- Bitcoin currently faces resistance at the $31,000 level, indicating a weakening bullish sentiment and a potential minor price correction.
The leading cryptocurrency, Bitcoin, is currently at a pivotal juncture as it defends the critical $30,000 level. Recent developments in the crypto market have added to the anticipation surrounding Bitcoin’s future trajectory.
In another news, financial giant Fidelity is reportedly preparing to submit a filing for a spot Bitcoin exchange-traded fund (ETF), potentially opening the doors for broader institutional adoption. This marks Fidelity’s second attempt at launching such a product, with its previous filing being denied by the US Securities and Exchange Commission.
The potential launch of a spot Bitcoin ETF is highly anticipated as it would provide investors with an accessible way to gain exposure to the cryptocurrency market. The involvement of industry giants like Fidelity and BlackRock signals growing institutional confidence in Bitcoin’s long-term prospects.
Bitcoin is back to $30,000. pic.twitter.com/h4isbwFBGO
— TradingView (@tradingview) June 22, 2023
The Impact of China’s Central Bank on Bitcoin Performance
The recent announcement of China’s central bank utilizing open market operations to inject additional funds into the financial system has potentially prompted Chinese investors to acquire more Bitcoin, potentially leading to a price surge. However, the infusion of increased liquidity from China and a shift in investor focus triggered by a contracting manufacturing sector have significantly impacted BTC’s recent performance. It is crucial to consider that an unexpected rise in lending rates by China could have adverse effects on BTC and potentially generate selling pressure in the market.
Current Bitcoin Price and Prediction
Bitcoin is currently priced at $30,472, with a 24-hour trading volume of $16.1 billion. It has witnessed a slight uptick of less than 2% during this timeframe. With a live market capitalization of $594 billion, Bitcoin maintains its top position according to CoinMarketCap.
In terms of price prediction, BTC/USD is currently encountering significant resistance around the $31,000 mark on the daily chart. This resistance level, coupled with the presence of neutral candles like doji and spinning tops, suggests a weakening bullish sentiment and buyer exhaustion. As a result, a minor price correction is anticipated in Bitcoin.
It’s important to highlight that immediate support can be found near the $29,600 level. A breach below this support level may trigger further downward movement, with the next significant support situated at $28,250, which aligns with the 50-day exponential moving average. In the event that the price drops below $28,200, the subsequent support is likely to emerge around $26,750.
