Since last weekend, the Bitcoin price has shown a notable rebound, rising from $103,130 to $105,945, registering a 2.75% gain. While several analysts mark this upswing as a temporary relief rally, BTC shows potential for a higher rally as the ETF buzz returns amid Truth Social’s filing for a spot Bitcoin ETF. Will the renewed recovery push this crypto to a new high?
Trump-Linked ETF Fuels Bitcoin Optimism
On Tuesday, June 3rd, the New York Stock Exchange (NYSE) proposed a rule change to the U.S. Securities and Exchange Commission (SEC) to list and trade the Truth Social Bitcoin ETF.
The ETF proposal, submitted under NYSE Rule 8.201-E, is designed to offer direct exposure to the price movement of Bitcoin. Yorkville America Digital, LLC will manage this ETF, while Foris DAX Trust Company will serve as custodian.
While Donald Trump’s name was not mentioned in the official filing, the Bloomberg analyst Eric Balchunas hints at the political influence on this ETF.
“No fee or ticker. I’m guessing we will see a S-1 soon with more info. Also notable “Trump” name not on the ETF or anywhere in docs really. Although everyone knows who own Truth Social.”
If approved, this ETF would serve as a politically charged vehicle for crypto exposure, thereby bolstering liquidity and attracting institutional buyers.
Fibonacci Tools Hints Major Support in BTC Correction
Despite the ETF filing, Bitcoin experienced overhead selling pressure at the $106,500 level, resulting in a 0.44% intraday decline. A long-wick rejection candle indicates that the traders continue to follow a sell-the-bounce sentiment in the market.
If the bearish momentum persists, the coin price will breach the 23.6% Fibonacci retracement level at $103,187 and the 20-day exponential moving average, signaling a bearish shift in market sentiment.
The post-breakdown fall could push the asset price to the $97,650 and $92,970 support levels, which closely coincide with the 38.2% and 50% FIB levels, respectively.
However, a correction to these levels is common in a sustained uptrend, as it also allows buyers to regain momentum. Thus, potential investors must track these support levels for a potential rebound.
On the contrary, a breakdown below the $92,970 could accelerate selling pressure for a prolonged downtrend.
Also Read: Australia Introduces New Crypto ATM Rules Amid Rising Scams
