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(Kitco News) - The outlook for the cryptocurrency market improved on Tuesday as BlackRock's recent application for a spot Bitcoin (BTC) exchange-traded fund, and rumors that Fidelity is looking to follow suit, helped boost BTC and the broader altcoin market.
Stocks, on the other hand, trended down as investors remain hesitant to put more money to work in the markets ahead of Fed Chair Powell’s upcoming testimony in front of a House Committee that will provide insight into the central bank's future plans on interest rates.
Data provided by TradingView shows that after holding near $27,000 in the first half of the trading day on Tuesday, Bitcoin’s price spiked in the afternoon, hitting a daily high of $28,315 before pulling back to support at $28,200.
BTC/USD Chart by TradingView
Kitco senior technical analyst Jim Wyckoff highlighted that “July Bitcoin futures prices [were] higher in early U.S. trading Tuesday, as the market has seen a good short-covering bounce after prices last week hit a three-month low.”
Bitcoin futures 1-day chart. Source: Kitco
“While the bulls have gained some strength, the BC bears still have the slight overall near-term technical advantage as a price downtrend is still in place on the daily bar chart,” Wyckoff said. “However, more price gains this week would negate the price downtrend and give the bulls better power.”
Tuesday’s price action appears to have done just that, as noted by market analyst Rekt Capital, who posted the following tweet noting that a spike above $28,000 would negate the multi-week downtrend for BTC.
It would be really positive for #BTC to break beyond the ~$28000 (blue) level
— Rekt Capital (@rektcapital) June 20, 2023
Because the series of Lower Highs would finally be invalidated with a clear Higher High$BTC #Crypto #Bitcoin pic.twitter.com/3yJBAgQBRt
Not only is BTC showing a strong recovery, but its 20-day moving average has also performed a golden cross with its 200-day moving average, a bullish signal that has never happened before.
#Bitcoin $BTC is about to make the first golden cross of the MA20/200.
— ????????????????? ?? (@el_crypto_prof) May 30, 2023
This has NEVER happened before.??
At the same time, both bands are serving as support right now.
The death cross in Sep. 2022 happened just before the FTX-Crash.
It's time to put the dark times behind us pic.twitter.com/hxJ3nVZblP
As for the reason behind the Tuesday rally for BTC, MN Trading founder Michaël van de Poppe posted the following tweet highlighting the recent developments that have led to the bullish turn of events for the crypto market.
BREAKING:
— Michaël van de Poppe (@CryptoMichNL) June 20, 2023
After Blackrock filing for a Spot ETF, Fidelity rumouring the same, now Deutsche Bank applies for a Digital Asset license.
We're at 1997-1998 of the internet.
Institutional is going to join, and we'll have a mega cycle for #Bitcoin and crypto.
Altcoins climb higher
All but a handful of tokens in the top 200 traded in the green on Tuesday as the rising price of BTC encouraged traders to reengage with the altcoin market.
Daily cryptocurrency market performance. Source: Coin360
Stacks (STX), a platform that enables smart contracts and decentralized applications to use Bitcoin as an asset and settle transactions on the Bitcoin blockchain, led the market with a gain of 19.15%, followed by an 18% gain for Optimism (OP) and an 11.92% gain for Conflux (CFX).
The overall cryptocurrency market cap now stands at $1.11 trillion, and Bitcoin’s dominance rate is 49%.
