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Bitcoin Price Prediction: Hong Kong Bitcoin ETFs Likely To Keep The Price Above Pivotal $61,095 Support

After displaying signs of a promising rebound earlier today, Bitcoin again finds itself in the red. As of 09:52 UTC, Bitcoin experienced a decline of 1.40%, trading at $61,788. However, amidst this correction, the launch of Hong Kong Bitcoin ETFs is a beacon of optimism for the cryptocurrency market.

Hong Kong Bitcoin ETFs Start Trading

The much-anticipated Hong Kong Bitcoin ETFs commenced trading today at 09:30 AM Hong Kong time. Expectations are high, with ChinaAMC, one of the funds behind the ETFs, forecasting trading volumes to exceed $125 million on the inaugural day, potentially surpassing the volumes of US ETFs.

Why Hong Kong ETFs Are Important 

What distinguishes the Hong Kong ETFs, particularly the ChinaAMC ETF, is their advantage over their US counterparts. The Hong Kong ETFs provide spot and physical subscriptions and redemptions, a feature absent in US spot Bitcoin ETFs. Moreover, ChinaAMC’s Hong Kong spot ETFs are available in Hong Kong dollar, US dollar, and RMB counters. They are also offering listed and unlisted shares. This feature has garnered significant attention from miners seeking exposure to spot Bitcoin.

Hong Kong ETFs Attracting Investors From All Over Asia 

Furthermore, the ability to physically redeem Bitcoin has captured the interest of investors across Asia and the Middle East. This will drive up demand for Bitcoin and provide crucial support to its price in the short and long term.

Australia’s Bitcoin ETFs Coming Up 

The launch of the Hong Kong Bitcoin ETFs coincides with Australia’s confirmation of its own Bitcoin ETF later this year. This development, coupled with the increasing institutional demand globally, paints a bullish picture of Bitcoin’s future trajectory.

The surge in institutional demand arrives at a critical juncture following last week’s Bitcoin halving, which reduced the supply of newly mined Bitcoin by half. As a result, the convergence of heightened institutional interest and reduced supply could pave the way for a significant bullish breakout for Bitcoin.

More Avenues For Institutional Demand 

Commenting on the significance of these developments, industry experts emphasize the role of institutional adoption in driving Bitcoin’s mainstream acceptance and price appreciation. The accessibility of Bitcoin through regulated financial products like ETFs opens doors for a broader investor base, further solidifying Bitcoin’s position as a legitimate asset class.

Analysts remain cautiously optimistic, acknowledging the inherent volatility of the cryptocurrency market but also highlighting the transformative potential of institutional investment in reshaping the landscape of digital assets.

Overall, the launch of Hong Kong Bitcoin ETFs amidst a price correction underscores the growing institutional interest in Bitcoin. A Bitcoin breakout could be underway with Australia set to join the fray with its ETF. 

Bitcoin Bearish, But Holding Firmly Above Key Monthly Support

Bitcoin is experiencing significant downside pressure in today’s trading session, down by more than 1%. However, a zoom-out to the monthly charts reveals a crucial development: Bitcoin holds above the critical monthly support level at $61,095 on the last day of the month. 

Should Bitcoin maintain its position above $61,095 by the end of the day, it could signal a continuation of the bullish trend that started in February. The next pivotal level to watch in this scenario would be $71,278, a critical monthly resistance level. If bulls manage to breach this resistance, Bitcoin could quickly test $75,000 in the short term.

Conversely, if overall trading volumes remain low, Bitcoin might oscillate within the $71,278 resistance and $61,095 support for several days or weeks. This consolidation phase could signify a period of indecision in the market as participants weigh various factors influencing Bitcoin’s trajectory.

However, a breach of the $61,095 support level today would indicate a shift in sentiment towards the downside in the short term. Such a development could pave the way for Bitcoin to test lower prices, potentially reaching lows around $57,000.

Read More: Bitcoin Price Prediction & Forecasts

Which Way For Bitcoin?

While the randomness of the market can push Bitcoin in any direction, the odds are higher that Bitcoin will end the day above the $61,095 support. This could mark a potential continuation of the bull run that started earlier in the year. Demand from Hong Kong ETFs launched today will likely keep Bitcoin above the pivotal $61,095 support for the day.