BlackRock "helps" Bitcoin break through $26,000, reaching a weekly high

Less than 24 hours after BlackRock , the world's largest asset management company, submitted its spot Bitcoin ETF application, Bitcoin re-surged above $26,000 and soared to its highest level in a week, with a 24-hour increase of about 4% at press time, and Ethereum rose 3% to $1,718.06. The altcoin market also received a boost, with Solana and Cardano rising 4.5% and 2% respectively, BNB rising 2.75%, Litecoin rising 3%, and Uniswap tokens rising 4%.

BlackRock’s “help”

If the SEC gives the green light, BlackRock's iShares Bitcoin Trust will become the first ETF approved in the U.S. to track the price of Bitcoin, rather than futures contracts tied to the cryptocurrency. MicroStrategy 's stock price rose more than 5%, and Grayscale 's GBTC 's negative premium has narrowed, adding to the positive sentiment in the crypto market.

Gustavo Schwenkler, associate professor at the Leavey School of Business at Santa Clara University, commented: “An important purpose of Bitcoin as an asset class is diversification. It has a different risk profile than traditional financial markets, and if this is approved, then I can expect more institutional investors to add Bitcoin to their portfolios… This will institutionalize the market in a way that is not currently possible.”

The SEC has rejected all of the companies’ spot Bitcoin ETF applications so far. BlackRock’s filing comes a week after the SEC sued its cryptocurrency custody partner Coinbase for violating securities laws, leading many to speculate on the intentions of BlackRock’s application.

Mark Connors, head of research at Canadian crypto asset management company 3iQ , said on his social media that the timing of BlackRock's application may reflect its "implied support" in the face of legal actions by the U.S. Securities and Exchange Commission. In BlackRock's proposed iShares Bitcoin Trust, Coinbase will serve as the custodian of Bitcoin in the trust.

“The timing of BlackRock’s filing can be seen as reassuring regulators by reaffirming their commitment to Coinbase and the regulated spot Bitcoin Trust in the same action, which is a definite plus for Coinbase and the industry as a whole, as the filing sets out clear processes for custody, liquidity, and price monitoring that will have a positive impact on Coinbase’s business prospects and industry adoption,” Connors wrote.

Bitcoin dominance rises

Bitpush previously reported that on June 14, 2023, the Federal Reserve FOMC stabilized interest rates at 5-5.25% after ten consecutive rate hikes. The next day, the European Central Bank announced a 0.25% increase in its three main interest rates, effective June 21, 2023. These developments triggered a sell-off in Bitcoin, pushing it to a three-month low.

However, BTC price quickly rebounded from the bottom, sparking another round of bullish sentiment. Bitcoin’s market dominance has peaked since July 2021, indicating a renewed interest among traders and investors in the leading cryptocurrency.

Recent TradingView data shows that Bitcoin's dominance, or BTC's share of the total cryptocurrency market capitalization, has reached 49.8%. This is a level not seen since July 2021, when Bitcoin's dominance exceeded 48%.

It is worth noting that in April this year, Bitcoin’s dominance briefly touched 48.83%, and then fluctuated within a certain range.

Has the bearish momentum faded?

According to Glassnode co-founder Yan Allemann, the current phase of the trend is to retest the $26,200 level. Allemann believes that this is an important phase as it will determine whether Bitcoin can break through the previous resistance level and move towards the next target of $27,200.

Market analyst Crypto Con believes that one of the most accurate indicators of Bitcoin's bullish or bearish momentum is the 140-day moving average (140DMA), which shows that the price of BTC is below this key level. The 140DMA is a widely followed indicator in the cryptocurrency market because it clearly shows whether Bitcoin is in a bullish or bearish phase.

When the price of BTC is above the 140DMA, it is a bullish sign indicating that the cryptocurrency is likely to continue its uptrend. Conversely, when the price is below the 140DMA, it is a bearish sign indicating that the cryptocurrency is likely to experience a downtrend.

Crypto Con said that from the technical chart, BTC needs to remain at the $26,000 level throughout the weekend to continue its upward trend, and the price continues to be above this level may indicate that BTC is expected to continue to rebound next week.

Specifically, if the BTC price exceeds the immediate resistance of $26,060, it would indicate further bullish buying activity. A break above $27,343 would propel the price to the next resistance at $28,090. Conversely, if BTC turns down from its current position and breaks below $25,550, it would mean that the bulls are retreating and a drop to the important $20,000 mark is possible.