Bitcoin so far resisted at one-year high

Since surging past $30k back a couple of weeks ago, Bitcoin has been able to find support around the psychologically-important mark.

Since then, it has been resisted around the $31,400 mark, though is still trading around its highest levels since June 2022.

Bitcoin’s market cap now accounts for almost half (47.8% at the time of writing) of crypto’s total market cap of US$1.26 trillion.

 

Why is Bitcoin higher?

Recall that it was BlackRock’s application on June 15^th for a spot Bitcoin exchange-traded fund (ETF) that has moved prices onto this higher plain.

Bitcoin’s current ability to keep its head above $30k shows the resilient optimism surrounding BlackRock’s ETF.

And that’s despite the fact that the world’s largest money manager, with some US$9 trillion (US$9,000,000,000,000) in managed assets, had to on Monday (July 3^rd) refile its ETF application with the US Securities and Exchange Commission (SEC).

The frenzy surrounding BlackRock’s application is the hope that this ETF, upon gaining SEC approval, would allow swarms of retail investors to gain access to the world’s largest crypto.

And the positive spillovers are already taking hold.

Over US$145 million of funds were added to crypto-focused exchange-traded products last week, with June’s tally being US$261.5 million.

 

Bitcoin bulls need more good news

Still, between now and then, Bitcoin clearly needs more positive developments so that prices can climb even higher, offering further solace to a crypto world that has struggled since last year.

In light of the long 4^th of July weekend in the US, Bitcoin may yet see another sharp move due to the thinned-out liquidity amid the holidays.

 

Where to next for Bitcoin?

This ongoing consolidation around the $30k region is no surprise, given that this area has been a key battleground between bulls and bears since 2021.

A breakthrough to the upside may re-invoke the choppy trading between $30k and $40k as witnessed between mid-May through mid-July of 2022.

To be more precise, another runup from today’s prices may draw bulls’ immediate attentions to the $32,359 intraday high on May 31^st, 2022.

However, if BlackRock’s Bitcoin ETF application is dealt a major knockback by the SEC, that may drag Bitcoin back into sub-$30k domain once more, with immediate support set to be tested at last Friday’s low of $29,520.61.