Bitcoin (BTC) achieved new highs for the month after the June 20 Wall Street open as observers stayed cautious on market strength.
“No meaningful trend shift” for Bitcoin yet
The pair saw its highest levels since May 31 as the return of United States market trading boosted its performance. Versus the prior day’s lows, gains totaled around 4.2%.
Despite this, wary market participants stopped short of calling even a low-timeframe trend shift.
“It’s difficult to look for Daily breakout confirmation for BTC in the context of this blue Lower High diagonal resistance,” trader and analyst Rekt Capital commented alongside an explanatory chart.
“Because $BTC has failed so many post-breakout retests on the Daily timeframe here. Better to watch out for Weekly timeframe confirmation.”
In further Twitter coverage, Rekt Capital added that Bitcoin would have a “good chance” of exiting its current downtrend should strength hold out into the weekly close.
“But no meaningful trend-shift has occurred just yet, despite all the excitement,” he reiterated.
Fellow trader Crypto Tony was slightly more optimistic, forecasting a return to $27,500.
“Trend line being broken out as we speak, so let’s see if the bulls have what it takes to turn this into something special,” he commented alongside a chart.
“Remember that $27,100 is a key level for the bulls to flip into support tonight.”
New institutional crypto moves spark distrust
The uptick accompanied news that Germany’s largest bank, the $1.4 trillion lender Deutsche Bank, had applied for a license to custody crypto assets. This was the third similar announcement of the past week, following exchange-traded fund (ETF) applications from BlackRock and Fidelity Investments.
EDX Markets — a new crypto exchange with founding investors including Fidelity, Charles Schwab and Citadel Securities — opened its doors on the day.
“We are committed to bringing the best of traditional finance to cryptocurrency markets, with an infrastructure built by market experts to embed key institutional best practices,” EDX CEO Jamil Nazarali commented in an accompanying press release.
Against the backdrop of U.S. regulatory action against two of the biggest extant exchanges, suspicions over the timing of the new products and applications were easy to spot.
I’m sorry, but after watching, Blackrock, Fidelity, Citadel, Schwab and now Deutsche Bank, all apply for #Bitcoin ETFs, spot exchanges, etc. only a few days after the SEC drops a TRO on Binance and sues Coinbase… how can’t you think this entire past year was a giant inside job…
— Preston Pysh (@PrestonPysh) June 20, 2023
Asset management guru Larry Lepard additionally cited the repeated U.S. rejections of plans by the Grayscale Bitcoin Trust, the largest Bitcoin institutional investment vehicle, to convert to an ETF as food for thought.
Others were hopeful for the long-term positive impact on BTC price action.
“Bitcoin is bullish. Everything has changed,” trader and podcast host, Scott Melker, known as “The Wolf of All Streets,” wrote in part of the day’s social media commentary.
“Whether you think the Wall Street intrusion is good or bad is irrelevant… it should help the price of Bitcoin.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.