The bulls were able to return this Tuesday. After the bears managed to lower the BTC/USD below $ 10,000, the bulls gathered together and hit again.
Bitcoin settled over $ 11,000 and reached $ 11,488 in the early Asian hours on Wednesday. The largest digital asset was the best-performing top-20 coin, with over 13% growth in the last 24 hours. Sustainable recovery above the critical $ 11,000 level gives hope to the bulls and creates an environment for further recovery.
But Bitcoin’s explosive volatility kills the chances for approval of Bitcoin ETFs
While enthusiasts mark the end of the Crypto-Winter and 200% Bitcoin growth since the beginning of the year, some experts have expressed concern about the nature of recent volatility.
It is worth noting that the US Securities and Exchange Commission has already rejected several Bitcoin ETF proposals due to concerns about high market volatility and price manipulation risks. Bitcoin earned over 80% in 16 days, from 10th to 26th June, and lost 24% in just one day – from June 26th to June 27th.
These violent movements were fueled by unregulated exchanges that allow consumers to trade with huge leverage up to 1:100. And this means that volatility has been caused by unhealthy causes of “excessive leverage and outsized risk-taking”.
And while some experts express this concern, the FCA in the UK has granted approval to London-based Prime Factor Capital Ltd, a crypto hedge fund manager, created by former BlackRock Inc. employees.
The company will operate as a full-fledged alternative investment fund manager in line with EU regulation. According to the official statement, the fund will target institutional investors and will seek to manage over 100 million euro.
Neo is one of the biggest winners in the top 20
As for the performance of Altcoins, ETH/USD testing the resistance of $ 300 in the last 3 days and moved into a flag formation. XRP/USD declined to $ 0.3846 low yesterday. But Neo rose 8.78% for the last 24 hours and is currently trading at $ 17.83.
A hold above $ 17.33 (the high of Monday) this morning should support recovery later in the day. Moving back to the top of this morning at $ 18.01 will bring the first major resistance level of $ 19.00 in the game. Neo, however, will need support from the broader market to move over $ 18.
Unless we see the broader expansion of the crypto rally during the day, the first major resistance is likely to limit the upside momentum.
Neo’s failure to keep above $ 17.33 may signal that the digital coin will fall deeper into red territory. A clear break below $ 17.30 will take the $ 16.70 support test before any recovery. If the rally on the crypto market wouldn’t extend later in the day, Neo should continue its decline to $ 15.60.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.