Bitcoin (BTC) traded to highs of $27,500 on Coinbase earlier on Tuesday. This came as bulls capitalised on positive market reaction to news out of Hong Kong. The Securities and Futures Commission (SFC) announced that registered exchanges will begin allowing retail investors to trade BTC and ETH from 1 June.
Analysts say Bitcoin’s immediate price outlook needs a break above $27,600 for bullish continuation. On Tuesday, the SFC noted that crypto exchanges will soon be allowed to extend crypto trading services to retail investors. These tokens will need to have a substantial market capitalization, a category that Bitcoin dominates.
Noelle Acheson, the author of the Crypto Is Macro Now newsletter, commented on the news. She noted that “the news of Hong Kong allowing retail investors to trade in BTC and ETH on registered digital asset platforms delivered a notable BTC price bump in a bleak market – gives you an idea of how significant this news is.”
Despite the positive news, Bitcoin’s latest attempt to break to key levels above $28k hinges on overall market outlook. In particular, the headwinds currently in place regarding the US debt limit situation is one investors are likely to watch keenly. Crypto analyst Rekt Capital believes the critical resistance area that bulls must conquer for upside continuation is $27,600. He noted that “BTC may be forming an “exaggerated” Bullish Divergence on the Daily RSI. A potentially positive sign for some upside movement. However, [it is] important to realise that the key resistance to beat is ~$27600.”