Is a Big Bitcoin Bounce Coming? BTC Price Approaches Key Long-term Support Zone
A major near-term bounce in the bitcoin (BTC) price could be right around the corner.
That’s because bitcoin is nearing a test of a key support zone that could well form the floor for another solid rally.
Bitcoin has been ebbing low in an uncharacteristically subdued July.
Its spot price was last changing hands across major exchanges at around $29,300, close to 8% lower versus the yearly highs it hit earlier in the month around $31,800, and down just under 4% for the month.
The world’s largest cryptocurrency by market capitalization has been holding above its 50-Day Moving Average (DMA) (also at $29,300) this week.
But short-term technicals suggest further minor near-term downside might be on the cards in wake of bitcoin’s breakout below its prior multi-week range earlier in the week.
However, if bitcoin does drop into the $28,000s, it would run into a key long-term support zone around $28,500.
This is where the late May high, 100DMA and, most importantly, the uptrend for 2023 all come into play.
Technicians have thus marked this zone out as a great risk-reward area to add to long positions.
So, the technicals all look very bullish for bitcoin right now.
What about the fundamentals?
Do they support the argument for a bounce in the $28,000s, and a recovery to fresh yearly highs.
Probably.
Let’s examine why.
It’s going to be a long time before the US Securities and Exchange Commission (SEC) issues decisions on the waves of spot bitcoin Exchange Traded Fund (ETF) applications made by Wall Street giants last month.
That wave of applications, at the time, helped propel bitcoin from the mid-$20,000s to above $30,000.
A lack of updates could see some of this initial enthusiasm continue to price out.
But its undeniable that BlackRock, the
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