The cryptocurrency market experienced a significant surge Wednesday, driven by renewed institutional interest in digital assets following a series of spot Bitcoin (BTC) exchange-traded fund filings. This boost has propelled Bitcoin back above the $30,000 mark. In contrast, the equities market faced a downturn due to hawkish comments from Fed Chair Jerome Powell, hinting at possible rate hikes this year, causing pressure on stocks.
Powell’s Comments on Cryptocurrencies
During his address to the House Financial Services Committee, Powell discussed cryptocurrencies and revealed that the central bank’s staff has been communicating with lawmakers from both parties regarding crypto legislation. Crypto prices received an additional lift after Powell stated that the industry seems to possess some staying power.
Bitcoin’s Upward Trend
According to data from TradingView, Bitcoin’s upward trend, which began around midday on Tuesday, reached a high of $30,835 on Wednesday before stabilizing at $30,000. Bulls are now targeting the resistance level of $31,100, which was set when BTC reached its 2023 high of $31,165 on April 14. This rally has led to higher July Bitcoin futures prices, with senior technical analyst Jim Wyckoff noting that the bulls have gained significant strength recently and are eyeing further upside potential.
Price Patterns and Predictions
Markus Thielen, Head of Research at Matrixport, observed that Bitcoin has been trading above its 200-day moving average since early January, indicating a bullish market. He also noted a pattern in which Bitcoin’s price has been making higher lows, suggesting that, if the trend continues, Bitcoin could reach $35,000 before retracing to $30,000 and then targeting $40,000. Michaël van de Poppe, founder of MN Trading, shares a similar outlook, predicting a possible BTC correction to $28,000 before prices start to climb higher.
Altcoin Market Boost
The Bitcoin rally also proved beneficial for the altcoin market, as nearly all tokens in the top 200 experienced gains on Wednesday. Meme coin Pepe (PEPE) saw the largest gain of 45.4%, while Bitcoin Cash (BCH) increased by 23.9%, and Conflux (CFX) rose by 18.9%. The overall cryptocurrency market cap now stands at $1.17 trillion, with Bitcoin maintaining a 50% dominance rate.
