- Surprisingly over the weekend, Bitcoin (BTC) price surpassed the expected $40,000 milestone with strong trading volume.
- Investors are becoming more confident that the Federal Reserve has completed its series of interest rate hikes as inflation begins to slow.
- Bloomberg Intelligence predicts that a group of proposals from these funds is likely to receive approval from the U.S. Securities and Exchange Commission (SEC) by January.
With the strength it gained over the weekend, the Bitcoin price managed to exceed 41K dollars on Monday: What’s next for BTC?
Bitcoin Price Trading Above $41,000
Surprisingly over the weekend, Bitcoin (BTC) price surpassed the expected $40,000 milestone with strong trading volume. Currently, BTC is trading at $41,633 with a 5% increase, and the market cap is around $806 billion, with a trading volume of approximately $22 billion.
This marks the first time Bitcoin has surpassed the $40,000 level since May 2022, or more than 18 months. The crypto market is closely monitoring the effects of FOMO (fear of missing out) and FUD (fear, uncertainty, and doubt) related to the anticipated approval dates for the ongoing exchange-traded fund (ETF). Analysts speculate that developments in Bitcoin ETFs will influence the trajectory towards $50,000.
As investors become more certain that the Federal Reserve has completed its series of interest rate hikes, following a slowdown in inflation, attention has shifted to speculation about potential interest rate cuts next year, creating a favorable environment for a global market rally.
Simultaneously, the digital asset industry is awaiting developments related to applications submitted by major players such as BlackRock Inc. These applications are for the introduction of the first spot Bitcoin exchange-traded funds (ETFs) in the U.S. Bloomberg Intelligence predicts that a group of proposals from these funds is likely to receive approval from the U.S. Securities and Exchange Commission (SEC) by January. The outcomes of these applications will have a significant impact on the digital asset market.
Tony Sycamore, a market analyst at IG Australia Pty, noted, “Bitcoin continues to be supported by SEC approval for ETFs and optimism around Fed rate cuts in 2024.”
Where Is BTC Price Heading?
According to technical charts, the next resistance level for Bitcoin is $42,330. A recent analysis by CrediBULL Crypto notes that open positions (OI) remain relatively low despite the ongoing rise in prices. The analysis emphasizes that a decrease in OI leads to a potential $2,000 drop before reaching a possible bottom level, indicating a potential bottom level.
With the current trading price at $41.6K, the local bullish cancellation level is set at $39.5K. While some expect a drop to $30,000, the analyst does not see movements below $35,000 as likely.
CrediBULL Crypto emphasizes the expectation that there won’t be significant declines once the $40,000 level is surpassed, maintaining confidence in this scenario. Some market analysts also anticipate BTC reaching $60,000 before the next halving in April 2024.
