Bitcoin (BTC) attempted to maintain its gains on April 30 as Hong Kong’s institutional landmark gained momentum.
Hong Kong ETF Provides BTC Price Relief
Data from Cointelegraph Markets Pro and TradingView showed a local high of $64,714 on Bitstamp after the daily close.
This coincided with the launch of a new spot Bitcoin exchange-traded fund (ETF) in Hong Kong. This is an important moment for the Asian industry, which has few conditions to promote Bitcoin as a mainstream asset.
“Despite structural flows being dwarfed by U.S. ETFs (of course the world’s largest economy), this shows a dramatic shift in the East’s position from just a few years ago,” wrote financial commentator Tedtalksmacro. Recent comments on X.
“Slowly, rather than doing it all at once. “We are on track to ensure BTC continues to grow as a global macro asset.”
Adam Back, co-founder and CEO of Blockstream, noted a positive difference between the Hong Kong setup and the first month of trading for the U.S. spot ETF in mid-January.
So, BTC price action found some relief after starting the week with lows below $62,000.
Popular trader Daan Crypto Trades has revealed a break from a falling wedge that is currently in the process of retesting potential support.
Continuing, Keith Alan, co-founder of trading resource Material Indicators, asked whether ETFs alone can influence long-term changes in price action. He noted that the U.S. Federal Reserve’s decision on interest rates is expected on May 1, an event that typically precedes sell-side pressure on cryptocurrencies.
“Will the Hong Kong bulls break through the $65.5,000 resistance, or will they take a more measured approach and wait for the monthly close and Fed Chairman Powell’s remarks on Wednesday to set the tone for May?” He summarized to X number of followers.
The attached chart shows the main liquidity areas of the Binance BTC/USDT order book.
Funding rates support Bitcoin leveraged longs.
Meanwhile, funding rates across derivatives platforms are slightly negatively skewed.
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The excess shortage was encouraging, but for the DecenTrader trading suite, it could be indicative of overall volatile market conditions. The day suggested traders could still easily bet higher or lower.
“Bitcoin’s weighted average funding ratio continues to fall negative as the price falls.” wrote With its own chart.
“The market seems unsure of the direction of the next breakout.”
In the latest edition of its “London and New York Color” market update sent to subscribers of its Telegram channel on April 29, trading firm QCP Capital similarly admitted that its funding was in trouble.
“Near-term realized volatility is indeed subdued given the narrow spot range, but markets are likely to be overly complacent given the prevailing macro developments (Middle East conflict, potential US stagflation, yen weakness, US fiscal commitments, etc.) “He warned.
“Perp funding has largely stalled with many altcoins showing negative funding, paving the way for speculators to build leveraged long positions.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.