- As the cryptocurrency once again consolidates above a significant price level, Bitcoin rose on Friday, reaching the highest levels in 19 months.
- While the $35,000 level may appear secure, the real challenge for Bitcoin would be to consolidate above $38,000.
- Cryptocurrencies continue to be positively affected by the hope that U.S. regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF).
Bitcoin price is gaining strength above $38,000, reaching the highest level in 19 months: Can BTC hold above $38,000?
Bitcoin Price Reaches 19-Month High
As the cryptocurrency once again consolidates above a significant price level, Bitcoin rose on Friday, reaching the highest levels in 19 months. Bitcoin’s price increased by 2% in the last 24 hours, reaching $38,600, surpassing the $38,800 level, marking the highest level since the sharp and prolonged bear market for cryptocurrencies in April 2022.
Bitcoin, with an average percentage increase of around one-third since mid-October, emerged from a calm period of crypto trading, triggering a rally and prompting calls that a new bull market has begun. Markus Levin, co-founder of the blockchain network XYO, said:
“The lack of a significant pullback after Bitcoin’s recent rallies strongly indicates there is much greater buying power now than just a few months ago. This resembles a bull market, and it looks like we are in the early stages of a bull market. I am skeptical that there is likely to be a drop below $35,000, apart from a lot of bad news.”
While the $35,000 level may appear secure, the real challenge for Bitcoin would be to consolidate above $38,000. Although the largest digital asset has surpassed this level several times in recent weeks, it has not been able to hold gains above $38,000 so far; selling pressure often pulls prices down within a few days.
Effects of ETF and Interest Rate Expectations
Cryptocurrencies continue to be positively affected by the hope that U.S. regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF). Expectations that interest rates will decline in early 2024 – a macro trend that has supported the Dow Jones Industrial Average and the S&P 500 in the stock market – have also provided support for cryptocurrencies.
Beyond Bitcoin, Ether, the second-largest token, rose by about 2.5% to nearly $2,100. While smaller cryptocurrencies or altcoins showed a more subdued performance, Cardano saw a 1% increase, and Polygon posted a slight increase. Memecoins were in the green, with Dogecoin rising by 3% and Shiba Inu increasing by 1%.
