- Bitcoin reaches its highest level since the beginning of May with a 7.7% increase in the last 24 hours.
- BlackRock’s application for a spot Bitcoin exchange-traded fund (ETF) triggered the initial rise in Bitcoin.
- Other major companies like WisdomTree and Invesco are expected to make spot Bitcoin applications soon, further fueling the rise.
Bitcoin has experienced a surge in the last 24 hours, bringing joy to cryptocurrency investors. Within a short period of time, Bitcoin has risen from $26,600 to $29,000, reaching its highest level since the beginning of May.
According to Liquidated data, $36 million worth of short positions were liquidated in Bitcoin during this period.
The Reason Behind the Rise
Bitcoin had lost value following lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase, dropping to $25,200. However, positive news began to emerge for the industry, and Bitcoin has gained more than 17% since then.
The initial trigger for the rise in Bitcoin was when BlackRock, the world’s largest asset manager, applied to the SEC for a spot Bitcoin exchange-traded fund (ETF). The fact that out of the nearly 600 applications BlackRock has made, only one has been denied approval raised the question of whether approval for the first spot Bitcoin ETF is coming.
It is believed that the recent spot Bitcoin applications by trillion-dollar companies like WisdomTree and Invesco have further accelerated the rise.
Price Target
Social media influencer and analyst “Carl From The Moon” had pointed out the “Inverse Head and Shoulders” formation in the Bitcoin chart, suggesting that Bitcoin could experience a rise of more than 7%. After the analyst’s prediction, Bitcoin closed at the $27,200 level and quickly reached the analyst’s price target.
Bitcoin has rapidly risen to a crucial resistance level. It is believed that if Bitcoin rises to the $30,000 level and closes at that level, it could trigger a significant increase. If Bitcoin surpasses its previous peak of $31,000, it could rise to the $38,000 level.
Jordan Lindsey, a trader with over 25 years of experience in financial markets, indicated that the $30,000 level in Bitcoin could be a starting point for a rally.
With the recent surge, the cryptocurrency market as a whole has turned green. Altcoins have shown gains of up to 20%, and Bitcoin dominance continues to increase.
