Bitcoin has been trading in a tight range for the past few months, struggling to hold above $30,000 for a sustained period. After a quick surge to start the year resulted in a near-doubling of its price, any time Bitcoin has attempted a breakout above $30,000, there has been an abruptness of reversals. On July 13, the cryptocurrency surged to a one-year high above $31,800, only to give up the $31,000 and $30,000 levels within hours and dip below $29,000 within days. This week, Bitcoin climbed to top $30,100 late Tuesday afternoon, only to slip back more than 1% to about $29,700.
Analysts are pointing to a number of reasons behind the rallies struggling to hold, with one of them being many buyers sitting on the sidelines until getting clarity on whether the SEC will soon allow a spot Bitcoin ETF. “The market is stuck whilst it awaits new fundamental information,” said Spencer Hallarn, a derivatives trader at market maker GSR. According to Sean Farrell, head of crypto strategy at FundStrat, one reason behind the lack of momentum could be due to miners taking profits ahead of the Bitcoin halving. Christopher Newhouse, an independent crypto derivatives trader, echoed Hallarn’s thoughts, saying that one of the most meaningful catalysts is specifically focused on the spot ETF and any subsequent delays or an approval.