- Bitcoin’s price has risen to $41,750 in the last 24 hours with a modest increase of less than 1%, but it was still retracing from the peak above $42,000 seen on Monday.
- The key driving factor behind the rise in Bitcoin prices was optimism that U.S. regulators would soon approve the first-ever spot Bitcoin exchange-traded fund (ETF).
- Analysts believe there is momentum behind Bitcoin’s recent surge and potential for further gains.
On Tuesday, Bitcoin and other cryptocurrencies continued to move without significant changes, maintaining their gains despite the fall in stocks: Will there be a correction after the rally in Bitcoin price?
Will There Be a Correction in Bitcoin Price?
On Tuesday, Bitcoin and other cryptocurrencies showed little change, holding onto their gains despite a decline in stocks. Analysts see the potential for Bitcoin to rise further after the final leg of a major crypto rally.
Bitcoin’s price rose to $41,750 in the last 24 hours, with a modest increase of less than 1%, but it was still retracing from the peak above $42,000 seen on Monday. This level was the highest since digital assets entered a harsh and prolonged bear market 20 months ago.
The largest token rallied over 50% since mid-October, rising over 10% in the last five days, ending a quiet period of several months and triggering calls for a new crypto bull market. FxPro broker analyst Alex Kuptsikevich said, “A broader profit-taking move could bring the price back to $40,000, then attract new buyers.”
The key driving factor behind the rise in Bitcoin prices was optimism that U.S. regulators would soon approve the first-ever spot Bitcoin exchange-traded fund (ETF), and this is expected to bring a new wave of investor interest to cryptos. Expectations that the Fed will cut interest rates several times next year have also supported technology stocks and tokens by providing an improved macroeconomic backdrop.
However, cryptocurrencies have largely outperformed the Dow Jones Industrial Average and S&P 500, which have seen declining gains in recent days after a strong November. Analysts believe there is momentum behind Bitcoin’s recent surge and potential for further gains.
What will be the next target for Bitcoin?
Katie Stockton, Managing Partner of Fairlead Strategies technical research firm, said, “Bitcoin has surpassed another resistance around $38,000 in a short-term bullish development… reflecting renewed short-term momentum, making the $42,200 resistance seem achievable. If the next resistance is surpassed, the targeted secondary level will be around $48,600.”
Beyond Bitcoin, Ether, the second-largest token, experienced a decrease of less than 1% but held above $2,200, still at a 20-month high. Smaller cryptocurrencies or altcoins traded calmly, with Cardano and Polygon both trading nearly flat. Meme coins were more optimistic, with Dogecoin rising by 2%, while Shiba Inu jumped by 3%.
