Bitcoin price has held steady above the crucial zone of $30,000 amid news of major entities filing for spot Bitcoin ETFs. Even so, it lacking enough momentum to break the resistance around $31,000 amid a hawkish Fed and the upcoming bitcoin options expiry.
What’s driving the bitcoin market?
The market sentiment remains a key driver of bitcoin price and the broader crypto market. For about a week now, the largest crypto by means of market capitalization have held steady above the crucial resistance-turn-support zone of 30,000.
A look at the crypto fear & greed index, which is one of the key measures of the mood within the crypto market, indicates a shift in sentiment. About two weeks ago, the index was at a fear level of 41. It has since improved to a greed level of 62 in the previous session before easing to a neutral of 54 on Thursday.
The shift in sentiment is largely due to the recent news on EFTs. The latest entity to file with SEC for a spot bitcoin ETF is asset management company, Fidelity. A week ago, bitcoin price hit its highest level in over a year after news that Wisdom Tree, BlackRock, Bitwise, VanEck, and Invesco had filed applications with SEC for spot bitcoin ETFs.
Investors are also eyeing the expiry of Bitcoin options set for Friday. Ordinarily, bitcoin price tends to be subject to heightened volatility ahead of such an expiry. Besides, the Fed’s hawkish stance remains a key driver of the broader crypto industry.
While the central bank left its interest rates unchanged during its June meeting, there is a possibility of two more rate hikes in the year’s second half. At the same time, the Fed Chair, Jerome Powell indicated that a recession is possible but unlikely. With this in mind, investors will be eyeing the PCE price index on Friday. The data, which is Fed’s preferred gauge of inflation, will give further cues on Fed’s decision in coming meetings and bitcoin price by extension.
Bitcoin price prediction
About a week ago, the 25-day EMA crossed the 50-day one to the upside as seen on its daily chart. With the formation of this bullish golden cross, the crypto will likely record further gains in the ensuing sessions.
In particular, the range between 29,867.98 and 31,080.05 will be worth watching. By attracting more buyers, BTC/USD may rally further to a fresh one-year high at 31,651.14. However, this bullish thesis will be invalidated by a pullback past 29,209.34.