Crypto Roundup #18: Traditional Market Entrants Stir Excitement, Bitcoin Hits New Highs
Hello, readers! As you may have noticed, there’s been a slight change. Previously known to you as Elvryn, I have rebranded and will now be writing under the pseudonym Silver.
As we close another whirlwind week in the crypto world, we take a moment to review the highlights from June 19 to June 25, 2023. From financial giants entering the crypto market to exciting new highs for Bitcoin, it’s been a week to remember.
Regulatory Issues and Corporate Interest
Binance, a well-known player in the crypto exchange landscape, was hit with a mandate to cease services in Belgium. Further, it withdrew operations from several European Economic Area countries amid rising regulatory concerns.
Contrarily, Deutsche Bank revealed its intention to extend its reach into the crypto realm. The bank applied for a regulatory license to provide custody services for digital assets, marking a significant strategy shift towards generating revenue from digital asset-related products.
The launch of EDX Markets, a new cryptocurrency exchange backed by financial giants Citadel Securities, Fidelity Investments, and Charles Schwab, made headlines. This traditional-meets-digital platform has positioned itself to work within conventional financial rules, launching spot trading for four cryptocurrencies.
A Week of Bitcoin ETF Filings
The week saw a wave of filings for Bitcoin ETFs. Big players like Wisdomtree, Invesco, and Valkyrie Investments entered the fray, reinforcing the bullish sentiments circulating within the market. In a similar vein, Invesco revived its Bitcoin spot ETF filing, following in the footsteps of BlackRock, Fidelity, and WisdomTree.
The Bullish Surge of Bitcoin
Bitcoin stole the show this week, fighting against resistance to secure a new high for 2023. The BTC Dominance rate exceeded 50% for the first time in two years, signaling the market’s high energy and Bitcoin’s unchallenged reign.
Weekly
The week saw a robust bounce from Bitcoin’s $25k support level. This level, a one-year resistance point, saw extensive retesting and a flurry of optimistic activity in anticipation of institutional investment via ETFs, hedge funds, and banks. The news sent prices spiraling upward by nearly 20% within the week. Despite this, Bitcoin didn’t entirely surpass its previous top, ringing cautionary alarms for the possibility of a double top.
Daily
Bitcoin’s daily charts revealed a clear breakout from the descending channel of recent months. The price continued its upward trajectory, supported by bullish divergences in both RSI and MACD. However, this breakout isn’t completely convincing as the price struggles to maintain its momentum. There’s a critical need to monitor whether it can sustain levels above $31k or risk a possible return to the descending channel.
Ethereum
Compared to Bitcoin, Ethereum didn’t exhibit similar bullish vigor this week. Although the price remains within a range that has been holding for over a year, Ethereum didn’t achieve new highs, making its current market posture somewhat uncertain.
Ethereum lacks a robust bullish structure on the daily chart, leaving its future direction rather uncertain. If Bitcoin continues its climb, Ethereum may retest its last resistance at $2k. However, at this point, Ethereum’s future seems to hang in the balance, making it a toss-up in terms of price direction.
Bitcoin Dominance
Bitcoin dominance reached 52% this week, with most altcoins continuing to bleed, except for a few of this year’s top performers. As Bitcoin is currently the headline of most financial news and a topic of interest for governments and traditional markets, it’s expected that Bitcoin dominance will continue to rise.
This resurgence in Bitcoin’s dominance underscores the notion that Bitcoin remains the king of the cryptocurrency market, boasting a market cap larger than all other cryptocurrencies combined. With the halving event less than 10 months away, we can expect more bullish talk favoring Bitcoin in the upcoming months. However, keep in mind that low valuations of altcoins could present intriguing buying opportunities for future gains.
What’s Next for Altcoins?
In times when the market seems drenched in red, I often find the best buying opportunities. Altcoins are facing a rough time currently, but I don’t expect this to last long. A year from now, they’re likely to be valued higher, and as the new bull market begins, I aim to be well-prepared.
Last weeks, I added three new altcoins to my portfolio: OP, APT, and PEPE.
Aptos (APT)
A high-throughput Layer 1 PoS blockchain leveraging the novel Move programming language.
An undervalued late-2022 coin that’s already quadrupled in 2023. Bought during a retracement at the breakout level of 2022.
Optimism (OP)
A Layer 2 blockchain built on Ethereum to enhance scalability through optimistic rollups.
A 2022 altcoin that hasn’t experienced a full bull cycle yet. Purchased at the 0.786 Fibonacci retracement level, a long-term entry point.
PEPE (PEPE)
A deflationary meme coin on Ethereum, capitalizing on meme popularity with a no-tax policy and redistributive system.
A meme coin driven by its vibrant community. Secured tokens at a daily chart breakout level, anticipating it’ll rival SHIB and DOGE in the next bull market.
Remember, these are examples of my personal strategy. Always conduct your own research and make informed decisions.
Conclusion
In an eventful week, Bitcoin hit new highs, ETF filings rose, and financial powerhouses deepened their crypto engagements, indicating the market’s resilience and growth potential. Despite regulatory challenges, the future looks bright, particularly with the looming approval of BlackRock’s Bitcoin ETF.
Amid these shifts, certain altcoins offer intriguing opportunities, showcasing the market’s rich diversity. Coins like Aptos, Optimism, and PEPE could be worth watching.
Follow me on Twitter and Medium for more weekly altcoin picks, market insights, and updates. Remember, this is the time to strategize and accumulate. Strategy over panic, always.
Happy investing!
