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Investing.com – The price rebounded sharply on Tuesday, reaching a high of $30,235, the highest since July 23 and compared to a low of $28,700 the day before, as the crypto market reacted positively to several events.
Notably, the downgrading of many US banks by rating agency Moody’s reminded traders that the US banking sector remains fragile, highlighting the potential role of cryptos as an alternative to the traditional financial system.
Remember that a few months ago, when several US banks went bankrupt, Bitcoin and other cryptocurrencies also reacted positively according to the same logic.
Another factor that boosted the price of bitcoin on Tuesday concerns statements by Mike Novogratz, during the presentation of the results of his crypto investment company Galaxy Digital. He said that according to his sources at BlackRock (NYSE:) and Invesco, institutional investors expect a Bitcoin ETF to be approved by the SEC within the next 4 to 6 months.
The investor also believed that the approval of the spot Bitcoin ETF will pave the way for institutional funds to enter the cryptocurrency space, as it will be “very easy for people to make large allocations in the space”.
Technical thresholds to watch on Bitcoin
From a chart perspective, the first thing to note is that Bitcoin quickly fell back below $30,000 following yesterday’s test.
This major psychological threshold therefore remains a key resistance for the , which argues for the downside today, especially as traders should be hesitant to go long before the release of US inflation data tomorrow.
In this case, the $29,000 zone will be the first support to consider, before last week’s low at around $28,600, close to the 100-day MA at $28,550. If, on the contrary, Bitcoin manages to post a confirmed break above $30,000, it is the $31,000 threshold and the annual high around $31,800 that will be the first resistances to take into account.