• Bitcoin price held on the support/resistance zone around $29.1k after teasing $28.8k on Monday.
• The decision on spot Bitcoin ETF has been left to the US SEC after several institutional investors led by BlackRock, and Valkyrie filed earlier this month.

Bitcoin price has found a support level around $29.1k to hang on after the bulls failed to defend a rally beyond $32k earlier this month fueled by the spot ETF application in the United States. Down approximately 3 percent from Monday through Wednesday, Bitcoin price has not yet invalidated its bullish macro outlook.

Moreover, the Bitcoin daily and weekly time frame has been forming higher highs and higher lows, a well-known characteristic of a rising trend in any market. However, most crypto analysts fear the short-term weaknesses could push the Bitcoin price towards a psychological support level of around $25k. 

Closer Look at Bitcoin Market Outlook 

The recent spot Bitcoin ETF frenzy has revealed the increasing thirst from institutional investors to get crypto exposure amid rising global inflation. Notably, investment fund managers are advising their institutional clients to increase their Bitcoin position before the fourth halving event, which is expected to trigger a fresh crypto bull rally. In a recent interview, BlackRock CEO Larry Fink stated that Bitcoin is fast digitizing gold and helping investors hedge against the high inflation rate and rising interest rates. 

The high interest in Bitcoin products from institutional investors is evident from the exponential growth of the open interest market. According to market data provided by Coinglass, Bitcoin’s open interest has gained more than $4 billion YTD to about $14 billion in July. Essentially, the open interest market can provide a more accurate picture of a contract’s liquidity and interest, thus identifying whether money flows into a contract are increasing or decreasing.

With veteran fund managers led by Cathy Wood predicting Bitcoin at more than $1 million by 2030, more buyers are undeniably outpacing the sellers despite the short-term pullbacks. 

Meanwhile, the recent SEC vs Ripple ruling that gave the altcoin market a fresh bullish outlook has significantly undermined the Bitcoin price upward momentum.  Spencer Hallarn, a derivatives trader at crypto investment firm GSR, said:

“In the wake of the XRP ruling, the associated enthusiasm for [altcoins]and an uptick in listings on exchanges has served to reverse the focusing effect of capital into the majors that had occurred over the last few months and has contributed to the loss of price momentum,”

BTC Price Action and Analysis

Despite Bitcoin price dropping below $30k earlier this week, more coins have been identified to leave centralized exchanges into self-custody. According to a recent on-chain analysis conducted by Santiment, the Bitcoin supply on exchanges has dropped by 12 percent since May to about 1.7 million in July.

Arguably, Bitcoin price could be easily headed to a new 2023 high if the bullish outlook stands in the coming weeks.

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