The price of Bitcoin has been trading between $29,900 and $31,160 for the past 18 days, causing concern among investors who are looking for explanations for the lack of a clear trend.
After a 25.5% rally between June 15 and June 23 led to Bitcoin’s (BTC) highest price level in 13 months, one would expect investors to become more active and optimistic, but BTC’s inability to sustain prices above $31,000 and neutral on-chain and derivatives data do not corroborate this thesis.
Bitcoin ETF expectations faced a harsh regulatory environment
The current price situation is particularly worrisome because of the expectations that arose after BlackRock, the world’s largest fund manager, applied for a spot Bitcoin exchange-traded fund (ETF) on June 16. Some analysts have predicted a Bitcoin price of $100,000 by the end of the year, adding to the frustration of traders who are betting on further gains.
It’s worth noting that in mid-April, investors experienced a consolidation of prices around $30,000, but it didn’t last longer than a week, and the price eventually dropped to $28,000. This movement explains why investors are hesitant to build positions at the current price levels and prefer range trading.
Despite the initial excitement about the possibility of the United States Securities and Exchange Commission approving a Bitcoin instrument for traditional financial markets, there’s negative price pressure due to the regulatory actions against leading exchanges like Coinbase and Binance.
