The crypto market is up today and has continued to make gains since Friday thanks to a combination of technical and fundamental factors.
Oversold rebounds across top crypto market assets
On June 17, the crypto market capitalization rose more than 2% to $1.05 trillion, up nearly 7.5% from a low of $975.25 billion two days ago.
Bitcoin (BTC), which now contains almost 50% of the crypto marketrebounded 8.5% from the June 15 low of $24,750.
Meanwhile, the second largest cryptocurrency Ether (ETH), is up more than 9% in the last two days. Last week’s worst performancesSolana (SALT), Cardano (ADA) and Polygon (MAT), also grew by 8-15% over the same period.
Interestingly, the crypto market capitalization has started to recover day by day relative strength index (RSI) the reading has fallen to almost 30, indicating that it is almost “oversold”.
Technically, an oversold RSI is leading to a price recovery or consolidation as shown below.
Blackrock’s Bitcoin ETF buzz
In addition to the technical bounce, the crypto market’s jump was helped by growing speculation surrounding the first approval of a Bitcoin ETF in the US.
In particular, BlackRock, an investment firm managing $9.5 trillion in assets, applied On July 16, the US Securities and Exchange Commission (SEC) for Bitcoin ETFs. During its history, the company has applied for 576 ETFs, facing only one rejection.
The cryptocurrency market is up 4.5% since the BlackRock app, with market analyst Lark Davis forecasting SEC approval could allow the asset manager to buy every bitcoin available on crypto exchanges.
Excerpts from Davis’ statement:
“Only about 10% of all bitcoins [worth $50 billion] sitting on switchboards. 0.5% of BlackRock moving money into BTC would buy every coin available.”
Related: Bitcoin price eyes $26,000 zone ‘acceleration’ as Binance concerns fade
However, the SEC has rejected all applications for bitcoin ETFs, including those from asset managers such as VanEck, Ark Invest and Bitwise.
Crypto market outlook for the second half of 2023
Technically, the crypto market has been moving within what appears to be a bull flag pattern from April 2023, raising its prospects for a continuation of the recovery trend towards US$1.37 trillion by the second half of 2023 – a 35% increase from current valuations.
Conversely, bears will attempt to move the market cap below the lower trend line of the bull flag, risking invalidating the bull setup entirely.
In this bearish scenario, the crypto market would fall towards the next major support at $875.50 billion, an important level from the June-November 2022 and March 2023 sessions.
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