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(Kitco News) - It was another day of gains in the cryptocurrency market on Friday as the enforcement actions by the U.S. Securities and Exchange Commission (SEC) against prominent crypto firms in early June have faded into the background thanks to the renewed interest of institutional investors in digital assets and multiple spot Bitcoin (BTC) ETF filings.
Stocks closed the week in the red as the realization set in for many that interest rates will continue to rise in 2023, prompting some to reevaluate their positions and rebalance their portfolios to a more protective, less risky approach. At the close of markets, the S&P, Dow and Nasdaq were all in the negative, down 0.77%, 0.65%, and 1.01%, respectively.
Data provided by TradingView shows that after hovering near support at $30,000 since late Wednesday evening, Bitcoin's (BTC) price spiked to a high of $31,485 on Friday afternoon before pulling back to $31,000.
BTC/USD Chart by TradingView
The strengthening case for Bitcoin was evidenced in the July Bitcoin futures market, with prices trading “firm and near this week’s contract high” on Friday, according to Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart. Source: Kitco
“The bulls have gained the solid overall near-term technical advantage following this week’s strong price gains,” Wyckoff said. “The path of least resistance for prices is sideways to higher in the near term.”
While things look positive in the near term, Bloomberg Intelligence senior macro strategist Mike McGlone warned his Twitter followers that, “Facing the Fed, Recession, Nasdaq - Potential launch of US ETFs won't shield Bitcoin from facing its first US recession, a potential equity bear market and vigilant central banks. Lessons of risk-assets vs. negative liquidity & economic contraction.”
According to McGlone, “Bitcoin’s key pivot point has been around $30,000 since 2021, when most risk assets appreciated on the back of the biggest money-supply surge in history. That the liquidity rug-pull is still happening, with most central banks continuing to tighten in June, could be a headwind, even as risk assets have bounced on hopes for a mild US recession and easing by the Fed.”
As for the recent ETF-inspired rally, McGlone said “Physical Bitcoin ETFs in the US are a matter of time, we believe. BlackRock’s application to start such a fund appears to have expedited this process, but a launch may not come in 2023, and Bloomberg Economics’ expects the US to tilt toward recession in coming months.”
Cubic Analytics founder Caleb Franzen largely echoed what McGlone said in the following tweet where he highlighted the major zone of resistance for Bitcoin between $31,000 and $35,000.
This is the next key grapple zone for #Bitcoin based on price structure over the past two years. I have to lean bullish going into this red zone, but we must acknowledge the threat of potential resistance here.
— Caleb Franzen (@CalebFranzen) June 23, 2023
Probably best not to chase here, so just sit back & enjoy the show. pic.twitter.com/TdxYvV3K9r
Altcoin uptrend continues
All but six tokens in the top 200 traded in the green on Friday as traders reentered positions ahead of what many expect will be an extended bull market leading into the Bitcoin halving in April 2024.
Daily cryptocurrency market performance. Source: Coin360
Bitcoin Cash (BCH) was the biggest gainer, increasing by 36.12% to trade at $184.10, while Threshold (T) gained 34.44% and Bitcoin SV (BSV) climbed 24.64%.
The overall cryptocurrency market cap now stands at $1.197 trillion, and Bitcoin’s dominance rate is 50.1%.
