Crypto market up today, why?
Today, the crypto market has seen an increase in value due to a combination of technical and fundamental factors. The market capitalization has grown over 2% since June 17, and is now valued at $1.05 trillion, which is up nearly 7.5% from the low of $975.25 billion just two days ago.
Oversold bounce across top crypto market assets
The top crypto market assets have seen an oversold bounce, with Bitcoin (BTC) rebounding 8.5% from June 15 lows of $24,750. Ether (ETH) has also seen an increase of over 9% in the past two days. Even last week’s worst performers, Solana (SOL), Cardano (ADA), and Polygon (MATIC), have recovered 8-15% in the same period.
The crypto market capitalization started to recover just a day after its daily relative strength index (RSI) reading fell almost to 30, which indicates that it was nearly “oversold.”
An oversold RSI prompts a price recovery or consolidation, as shown below:
- The South Korean security tokens market could be valued at $287 billion by 2030.
- SEC and Binance US reach temporary agreement on asset access.
- Binance and SEC agreement to relocate all US customer funds and wallet keys onshore.
Blackrock’s Bitcoin ETF buzz
Speculation around the first Bitcoin ETF approval in the U.S. has also helped the crypto market to bounce. BlackRock, an investment firm managing $9.5 trillion in assets, applied to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin ETF on July 16. The company has applied for 576 ETFs in its history, facing only one rejection.
The crypto market has risen 4.5% since the BlackRock application, with market analyst Lark Davis predicting that a SEC approval could have the asset manager purchase every single Bitcoin available across crypto exchanges.
However, the SEC has rejected all Bitcoin ETF applications, including those from asset managers like VanEck, Ark Invest, and Bitwise.
Crypto market outlook for H2 2023
From a technical perspective, the crypto market has ranged inside what appears to be a bull flag pattern since April 2023, which raises its prospects of continuing its recovery trend toward $1.37 trillion into the second half of 2023 – up 35% from current valuations.
Conversely, bears will attempt to push the market cap below the bull flag’s lower trendline, risking invalidating the bullish setup altogether.
In this bearish scenario, the crypto market would drop toward the next major support at $875.50 billion, an important level from the June-November 2022 and March 2023 sessions.
