Bitcoin (BTC) price surged above $31,400 on Friday, hitting its highest level since 2022, fueled by growing institutional interest in the first cryptocurrency.
Despite briefly declining, bitcoin managed to sustain a trading value above $30,000 for the first time since April. This price level has proved to be a significant point of resistance throughout 2023.
Having soared over 85% this year, the recent rally has met uncertainty about the sustainability of its gains. The overall market is grappling with regulatory concerns and macroeconomic factors adding to the prevailing uncertainty.
In this regard, crypto trading expert and analyst Michaël van de Poppe cast doubt on the cryptocurrency’s ability to sustain its rally a year from now tweet on June 24th. However, he pointed out that a minor correction in Bitcoin to around $28,500 would present an ideal wealth accumulation opportunity.
“Bitcoin made a nice high and broke the yearly high. I am not sure if we will continue from here, but on uptrends you will most likely see continuation of price advances rather than deep corrections. If we have a correction I’ll buy $28,500,” he said.
Bitcoin price analysis chart. Source: TradingView
Institutional interest increases the value of Bitcoin
The current surge in bitcoin value is largely due to increased interest from major financial institutions. Notably, BlackRock (NYSE:BLK), the world’s largest investment manager, recently applied a bitcoin spot-exchange-traded fund (ETF).
Additionally, this week launched a digital asset trading platform from EDX Markets, a cryptocurrency exchange backed by reputable firms such as Charles Schwab, Fidelity Digital Assets and Citadel.
These initiatives have boosted investor confidence in the crypto space, especially at a time when the Securities Exchange Commission (SEC) has tightened its regulatory crackdown on crypto exchanges like Binance and Coinbase for allegedly listing unregistered securities.
Bitcoin price analysis
As far as Bitcoin price analysis goes, the current trading price is well above the $30,000 resistance level, with a valuation of $30,621. On the weekly chart, Bitcoin saw over 15% growth.
Bitcoin seven-day price chart. Source: Finbold
Furthermore, the 1-day Bitcoin Technical Analysis obtained by TradingView points to an uptrend. Indicators summarize a ‘buy’ sentiment at 14, while the moving averages at 13 suggest ‘strong buy’ sentiment. The oscillators remain neutral, with a sentiment score of 8.
Technical Bitcoin Analysis. Source: TradingView
Despite its significant growth this year, Bitcoin is still behind its previous record high of over $60,000 set in 2021.
The cryptocurrency has faced major challenges over the past year due to rapid interest rate adjustments by the Federal Reserve and the collapse of cryptocurrency exchange FTX. These events triggered a widespread sell-off in the crypto market and consequently impacted the value of Bitcoin.
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