BlackRock’s application for a spot ETF of Bitcoin has encouraged other financial investors from following suit- which has naturally resulted in a different price analysis of the various cryptocurrencies than the previous month. Initially, it was just the New York-based asset management fund WisdomTree, which created a new filing on the 21st of June for a Bitcoin ETF. This was then followed by Invesco- the investment manager, which managed to reactivate its application for a spot ETF as well.
These announcements have readily boosted the sentiment of the investors, which has then resulted in a short squeeze, and an additional buying interest from traders who could have been waiting on the sidelines. The chronology of events of the last couple of days has definitely increased the buying interest in the cryptocurrency, which further sent its market dominance to above 50%.
Price Analysis Of Bitcoin and Ethereum
If we look up Bitcoin’s price analysis, it would be noticeable that the cryptocurrency broke and closed above the 20-day exponential moving average of $26,394 on the 17th of June. The bears had tried to sink the price below the level on 18th June, but the bulls held their ground solidly. This also attracted aggressive buying on 19th June, which picked up further momentum on 20th June. This then went on to catapult the price above the line of resistance of the descending channel pattern- which signified a short-term trend change.
Ether’s price analysis would have let us know that the cryptocurrency turned up from the strong support that it had received on 19th June, with the price resistance of $1,700- which signaled strong buying at this level. The bulls kept continuing their purchases and managed to push the price above the 20-day EMA on 20th June. This was absolutely the first sign that the bears had started losing their grip.