- Pav Hundal and Ted Coaldrake dive into the recent market rally and predict potential gains for Bitcoin and other leading assets.
- The analysts discuss how macroeconomics, interest rate cuts, ETF inflows, and rising speculation have driven Bitcoin back to over US$60K
- All eyes are set on a potential approval of the first spot Ethereum ETFs this month.
Swyftx’s Lead Market Analyst, Pav Hundal, and the firm’s Content and SEO lead, Ted Coaldrake, discuss the recent bullish wave that took over the crypto market this week.
Bitcoin Getting Ready for a Bullish Breakout?
Hundal started by analysing Bitcoin’s daily chart and discussed its recent price dip to May lows. This happened during late June/early July when the coin faced tremendous downward pressure, mainly caused by Mt. Gox repaying its creditors and the German government moving hundreds of millions in BTC to exchanges.
May was particularly volatile for Bitcoin. By April 24th, BTC was holding on strong at around US$66.5K (AUAU$98.7K). However, just a week later, the coin fell below US$57.4K (AU$85.2K), a decrease of 13.68%.
June was even more volatile as BTC regained the US$70K (AU$103.9K) level in just two weeks, only to repeat a similar pattern in early May.
Hundal recalled that if BTC tracked back to May levels, it could rebound to levels above US$63K (AU$93.5K) in the upcoming weeks. The analyst highlighted that BTC surpassed the US$64K (AU$95K) level in record time, generating a “bullish market structure”:
I don’t know how high we can go [in the short term], but I would expect some sort of pullback, and that’s what could set us up for our next trend.
Pav HundalSeveral factors could underpin this bullish market structure; Coldrake recalled that the Federal Reserve’s Chairman, Jerome Powell, said this week that the economy is no longer overheated, which both analysts agreed was a bullish sign for the crypto market.
The market eagerly awaits an interest rate cut this month. However, Coaldrake mentioned that Powell doesn’t really believe rate cuts will affect inflation.
Related: Crypto Sentiment Shifts Amid US Fed Chair Inflation Comments
Spot Ethereum ETFs For Next Week
Hundal analysed Ethereum’s (ETH) market performance, stating that ETH has stacked several green candles following the rising speculation of spot Ethereum exchange-traded fund (ETF).
Hundal highlighted that what we could be seeing is a massive run-up in the Ethereum price due to the market trying to price in the Ethereum ETFs, similar to Bitcoin ETFs back in January, which had a massive run-up until the launch day.
The launch of Ethereum ETFs is expected to happen next week. So far, 19b-4 filings have been admitted; these filings are a must for all asset managers looking to issue an Ethereum ETF and should contain all the required exhibits and information regarding the fund.
At least seven of the ten funds have disclosed fee waivers (unsurprisingly, Grayscale will charge a whopping 2.50% fee). The Securities and Exchange Commission (SEC) has requested that all asset managers submit final S-1s on Wednesday with all pertinent information, including fees.
Strong Inflows in the US and Australia
The analysts also talked about recent Bitcoin ETF inflows. As Crypto News Australia reported, Bitcoin ETFs have witnessed over US$1B (AU$1.48B) in net inflows in the last seven days, with over US$300M (AU$445M) registered on Tuesday.
Related: Australian and Hong Kong Bitcoin ETFs With Record Inflows as Second Fund Starts Trading
In addition to the US, Australia’s and Hong Kong’s ETFs have also seen growing momentum, even mirroring the performance of those in the US. Australia’s largest Bitcoin ETF, Monochrome’s IBTC, holds nearly 100 BTC, valued at around AU$ 90M.
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