Growth amid pressure. Why bitcoin rose in Price and what will happen next

Growth amid pressure. Why bitcoin rose in Price and what will happen next

Author: Robert Strickland (crypto-journalist)

"Growth amid pressure." Why bitcoin rose in Price and what will happen next

Experts told about the reasons for the rise in price of the leading cryptocurrency and how it will behave in the near future

Bitcoin rate exceeded $30.6 thousand on the evening of June 21. A week ago, the value of the first cryptocurrency dipped below $25 thousand, but against the background of the positive news for the crypto industry, only for the last day, it rose by almost 5%.

"Resumption of the race by big corporations."
Between June 15 and June 22, 2023, the most capitalized cryptocurrency, bitcoin (BTC), rose nearly 24%, said ENCRY Foundation co-founder Roman Nekrasov. The coin approached a local high of $30,958 on April 14, 2023. The cryptocurrency has not yet managed to update it.

30 168 +1 345 (4,67%)

Bitcoin, and after it, the entire market of digital assets, went up on the background of a number of positive news. According to him, a driver is the renewed race by major corporations for the right to obtain permission to launch the first bitcoin-based spot exchange-traded fund (ETF) in the U.S. market and the interest of large companies in cryptocurrencies.

On June 15, it became known that BlackRock, a major investment firm, filed an application with the SEC to launch a Bitcoin trust. This company initiative, if approved, could ease institutional access to the crypto industry, Nekrasov said.

On June 20, Deutsche Bank, one of Germany's largest financial conglomerates, announced its intention to provide cryptocurrency services. In parallel, Wall Street giants Citadel, Fidelity, and Charles Schwab launched their own decentralized crypto exchange. On June 21, one of the world's largest investment firms, Invesco, applied to launch a spot bitcoin ETF. All of this news has had a positive effect on cryptocurrency rates, according to Nekrasov.

"Suspicious Interest."
Interestingly, large companies are entering the crypto industry despite the fact that it is under pressure from the U.S. Securities and Exchange Commission (SEC), the analyst notes. In June alone, the regulator managed to bring charges against two major cryptocurrency exchanges, Binance and Coinbase, as well as significantly expanding the blacklist of cryptocurrencies (coins that the Commission considers to be illegally issued securities).

Notably, the SEC's actions are not only disapproved by members of the cryptocurrency community but also by government officials, the expert said. He pointed out that Warren Davidson, a member of the House Committee on Financial Services, suggested that the current head of the regulator, Gary Gensler, should be fired.

"The cherry on the cake" after this news was Fed Chairman Jerome Powell's statement about the need for the Federal Reserve to get involved in regulating the stablecoin market, which he called "a form of money" rather than securities, Nekrasov added.

Powell's comments could indeed affect the growth of cryptocurrency rates, agreed Cryptorg CEO Andrey Podolyan. He clarified that the head of the Federal Reserve did not only recognize stablecoins as a form of money but also said that cryptocurrencies are assets to be reckoned with.

Also, we should not forget about Powell's hints about the possibility of further rate hikes, reminds Nekrasov. The analyst explained that the U.S. inflation target has not yet been reached, and rate changes could put pressure on the stock market, followed by the movements of cryptocurrencies.

Summing up the interim results, the expert pointed out that the active market growth was realized against the background of unprecedented pressure from U.S. regulators on the crypto industry. The interest of large corporations in cryptocurrencies in the current market conditions looks suspicious, said Nekrasov.

He noted a statement from an active member of the crypto community, book author Preston Pysch, who did not rule out that the regulatory pressure on the crypto industry was a "reverence" that opened the door for Wall Street companies to enter the market profitably.

"Buying by the big players."
Bitcoin's price movement in recent days resulted from substantial spot buying, which began when the $25,000 level was reached, said cryptocurrency market analyst Viktor Pershikov. At the same time, the expert notes that the growth is consistent with the medium-term upward trend that began in early January.

Head of monitoring service CryptoQuant Ki Yong Ju also believes that the growth of the BTC rate is a consequence of purchases made by major players, Nekrasov said. If Ki is right, the further behavior of the cryptocurrency will largely depend on the actions of the "whales," the analyst explained.

The logical step after such active growth of BTC would be a correction, the expert said. Lack of strength to break through the level of the local maximum could be a signal to its beginning, but it is possible that the purchase of the big players is not yet complete.

"A correction is being requested."
Bitcoin came out of the accumulation zone with a rapid impulse, explains Andrey Podolyan. According to the expert, the daily chart already shows the so-called breakdown of the "bull flag" figure.

The bullish flag is a pattern frequently used in trading on the price chart. It consists of three main elements: a leader (growth of the rate), the flag itself (consolidation stage), and the breakpoint. The breakout point in the pattern is where the candle breaks the upper boundary of the flag.

Technically, the correction is needed now, at least to the area of $29.2 thousand, because the growth was almost failsafe, the expert says. He also noted that the correction may be stronger, approximately to the levels of the broken flag around $27.2 thousand. The price of Ethereum may correct to the area of $1.82 thousand, Podolyan believes.

The logical target for correction, according to Nekrasov, looks at the level of $28 thousand.

"Further growth".
In order to expect the further movement of the benchmark, for example, to the levels of $40 and $45 thousand, it is necessary that in the nearest days, the price will fix above the maximums of April, Victor Pershikov believes.

The expert expects further growth in bitcoin prices this year, which is indicated by a large number of fundamental factors. However, it is difficult to say for sure whether the growth of the last few days is the movement that will lead the price to further significant growth, the analyst said.

It is possible that the slight sideways trend seen over the past couple of months will continue on Bitcoin for a while longer

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