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Bitcoin Surges To New 26-Month High, ‘Whales Go Parabolic’ As Analyst Forecasts Rally Toward $60,500

Bitcoin (BTC), the leading cryptocurrency, has experienced a surge of over 3.6% in the past 24 hours and an impressive 27% in the last month. These gains have propelled the Bitcoin price to reach a new 26-month high of $53,360 on Monday, signaling investors renewed optimism.

BTC Whales Make Waves

Adding to the bullish sentiment surrounding Bitcoin, crypto analyst Ali Martinez highlights the significant activity of the BTC whales, stating that “whales are going parabolic.” 

Notably, In the past month alone, more than 150 new BTC addresses have appeared, each with more than 1,000 BTC. This surge in whale activity indicates a heightened confidence in Bitcoin’s long-term prospects and offers a positive outlook for its future price movements.

Bitcoin

Martinez emphasizes a “megaphone pattern” observed on Bitcoin’s daily chart. According to the analyst, this pattern suggests that if BTC maintains its position above the $50,000 level, a sustained close above $53,000 could catalyze a substantial rally toward the $60,520 mark. 

Bitcoin Rally Led By Leveraged Long Positions? 

As detailed in a recent Bloomberg report, BTC’s rise has been driven in part by a surge in spot demand and momentum traders capitalizing on a breakout after a period of consolidation, according to Chris Newhouse, a decentralized finance (DeFi) analyst at Cumberland Labs.

Newhouse highlights that the current price action has seen a relatively balanced level of liquidations, indicating that excessive short liquidations do not drive the recent rally. Instead, leveraged long positions have quickly replaced the liquidated shorts, suggesting a shift in sentiment toward bullishness.

Moreover, the report highlights that open interest for perpetual Bitcoin futures has experienced a noticeable increase, indicating growing market participation and interest in BTC derivatives. 

Simultaneously, Newhouse explains that short positions have been forced to close amid the latest rally, potentially a result of fresh long positions entering the market.

Nevertheless, the cryptocurrency’s ability to sustain its upward momentum and navigate key resistance levels will be crucial in determining its next growth phase.

In a further boost to Bitcoin’s optimism, MicroStrategy, the enterprise software firm known for its strategic Bitcoin purchases, announced that it has acquired an additional 3,000 cryptocurrency tokens this month for approximately $155.4 million. 

With a total Bitcoin holding of about $10 billion, MicroStrategy continues to demonstrate its confidence in its long-term value and potential.

Bitcoin

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Price Soars, Smashing Through $45,000 On The Back Of Two Key Factors

In the past 14 days, the Bitcoin price has displayed a significant uptrend of 14.5%, signaling a resurgence in bullish sentiment. This rally comes as Bitcoin spot exchange-traded funds (ETFs) have been trading for nearly a month, with the market already factoring in this development. As a result, Bitcoin is back on its natural course, gaining momentum ahead of the scheduled halving in April.

Currently, Bitcoin has not only regained its bullish momentum after a brief dip to the $38,500 level but has also surpassed the $45,300 mark. It now edges closer to its 25-month high of $49,000, with the $50,000 milestone within reach. 

Achieving this level would significantly narrow the gap between the current price and Bitcoin’s all-time high (ATH) of $69,000. However, what are the main catalysts behind this uptrend, and how far can the Bitcoin price climb?

Reduction Of GBTC Flows And Net Positive BTC Spot ETF Inflows

According to the latest analysis by QCP Capital, two key factors are driving Bitcoin’s upward trajectory: 

Daily outflows from the Grayscale Bitcoin Trust (GBTC) have decreased from $500-600 million to $100-200 million. Simultaneously, total inflows across all Bitcoin ETFs are now positive. This shift in the GBTC flows, and the emergence of net positive BTC spot ETF inflows contribute to the current bullish trend, according to the crypto trading firm’s analysis

Additionally, notable price movements have been observed around “spot ETF fixings.” Between 3-4 pm EST, QCP has recorded that the Bitcoin price tends to tick higher, possibly due to the one-hour observation window used by the BlackRock ETF (IBIT) to calculate its Net Asset Value (NAV). 

Conversely, downward pressure is typically observed after 4 pm EST as GBTC employs a point fix, leading market makers to sell around and after the fix.

Strong Performance In US Equities

Despite the Federal Reserve’s hawkish stance and higher US yields driven by robust February Non-Farm Payroll data (353k actual vs. 180k expected), US equities continue outperforming. 

Companies like NVDA and META have rallied due to strong earnings and positive headlines. Underallocated investors will likely continue buying any equities dips as they chase returns. 

According to the analysis, this bullish sentiment is expected to “spill” over into BTC and Ethereum (ETH), further fueled by the upcoming BTC halving and the ETH spot ETF narratives.

Ultimately, the trading firm assesses significant interest in accumulators, which enable investors to purchase Bitcoin or ETH at a “substantial discount” to the current spot price. This strategy is believed to present an attractive opportunity for bullish investors looking to build long positions throughout the year.

Bitcoin Price Faces Strong Barriers On Its Way To $50,000

Despite the uptrend, notable resistance levels could impede further upward movement and potentially lead to a consolidation phase for Bitcoin. 

To assess the nearest-term resistances accurately, the 1-hour chart indicates potential price paths for Bitcoin in the coming days if these bearish thresholds are breached.

In the immediate time frame, the $45,500 level emerges as Bitcoin’s next resistance level. This level previously marked a correction in the Bitcoin price shortly after the introduction of ETF trading.

Bitcoin price

Subsequently, the next target would be the $46,600 level if the immediate resistance at $45,500 is surpassed. However, while these two thresholds may present challenges, no significant resistance levels are evident on Bitcoin’s hourly chart until the $48,500 level. 

This particular level represents the final hurdle for Bitcoin before reclaiming its previous high reached on January 11, immediately following the approval of ETFs by the US Securities and Exchange Commission (SEC).

Considering the combined factors of Grayscale’s reduced sell-off and the overall performance of the equity market, alongside renewed investor sentiment, Bitcoin could potentially surge to previous highs and even surpass them, marking new highs since the end of the crypto winter. 

The key factor to be seen is how Bitcoin’s price will respond when encountering these highlighted resistance walls and whether the buying pressure will be sufficient to propel Bitcoin back on track toward the bullish momentum observed at the beginning of 2024.

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Long Positions Surge On Bitfinex: Whales Add 4,230 BTC, Signaling Potential Price Reversal

In a surprising turn of events, the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) has not yielded the anticipated immediate upside impact on the Bitcoin price. 

Contrary to expectations within the crypto community, BTC has experienced a sharp drop of over 16% since the ETF approval on Wednesday, January 11, dipping below the key $40,000 level. The failure of BTC bulls to hold the support level has led to a testing phase at the $38,000 level, accompanied by a 4.5% price drop within the past 24 hours.

Bitfinex Whales Buck The Trend

Amidst the market volatility, according to Datamish, Bitfinex whales have accumulated Bitcoin long positions since November 2023. This accumulation of approximately 4,230 BTC since January 17 marks the first sustained increase in Bitfinex BTC long positions following a sharp decline in November last year. 

Bitcoin

However, the recent downturn in the BTC price can be partly attributed to increased selling pressure from miners and asset manager Grayscale. Grayscale has notably increased its BTC sell-off since the ETF trading commenced. 

Transferring a significant amount of BTC from the Grayscale Trust address to Coinbase, totaling 69,994 BTC ($2.9 billion), has influenced the market dynamics. 

Additionally, reports indicate substantial sell-offs of Grayscale’s Bitcoin Trust GBTC shares, including a notable sale of 22 million GBTC shares by the FTX estate, worth nearly $1 billion. 

Bitcoin Liquidation Zones Wiped Off

The impact of Grayscale’s sell-off is evident in CoinGlass’ liquidation heatmap, which shows notable liquidation zones being wiped off in the 1-week chart. 

While Grayscale’s BTC dump has contributed to the price drop, the increased accumulation of BTC long positions on Bitfinex indicates a potential change in sentiment. A price reversal could occur if the $38,000 support line holds, pushing BTC back above $40,000.

Bitcoin

Furthermore, excluding Grayscale, institutional investors and asset managers involved in the ETF market have collectively acquired over 86,320 BTC at an average price of $42,000, representing a substantial $3.63 billion investment. 

Market experts such as Ali Martinez suggest that these institutions are likely to adopt a strategic, long-term view rather than engage in peak purchases. This level of institutional investment underscores the growing recognition of Bitcoin as a legitimate asset class and signifies confidence in its long-term growth potential.

Bitcoin

Currently, the Bitcoin price is at $38,800, reflecting a substantial year-to-date decline of over 12% and a 9.7% drop in the past seven days. The duration and extent of the selling pressure caused by Grayscale’s BTC dump remain uncertain, leaving the question of how much further the BTC price may decline.

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin Price Suffers Post-Spot ETF Blues, Drops 7% To $43,200

The introduction of Bitcoin (BTC) exchange-traded funds (ETFs) has triggered a significant sell-off, leading to a sharp decline in the Bitcoin price.

After gaining approval and commencing trading on Thursday, the ETFs have prompted a “sell the news” event, causing Bitcoin’s value to plummet from its initial trading price of $46,500 at the time of approval to a low of $43,200 within a matter of hours on Friday.

Over the past 24 hours, Bitcoin, the largest cryptocurrency by market capitalization, has experienced a 7% drop. Its gains over the past 30 days have been limited to a mere 4%, erasing much of the progress made during that period. 

Additionally, as selling pressure continues to mount following the approval, there are indications that the Bitcoin price may face further downward pressure.

Bitcoin Price Under Pressure

CryptoQuant analyst J.A. Maartunn observed significant sell orders in Bitcoin’s two-week chart on Wednesday. Notably, three clusters of sell orders were positioned between $46,100 and $48,000, comprising stacks of 755, 1,031, and 794 BTC, respectively.

According to the CryptoQuant analyst, such patterns are typically associated with market tops, unless these orders are later withdrawn or executed.

This influx of sell orders may help explain the lackluster response to the ETF approvals until now, as it appears that selling pressure has been building up. However, the situation has intensified even further. 

According to Maartunn, additional sell orders were detected on Friday, indicating that the seller is not yet finished. Two substantial sell orders have been placed just above the current Bitcoin price: one for 894 BTC at $44,000 and another for 1,071 BTC at $45,100.

Bitcoin price

These developments suggest that market participants are taking advantage of the ETF news to offload their Bitcoin holdings, leading to increased selling pressure and a subsequent price decline. 

The market’s stabilization following this period of heightened selling pressure remains uncertain. The introduction of ETFs was believed to bring about heightened institutional interest and potentially drive up the Bitcoin price. 

However, it is important to note that the impact of these ETFs is expected to unfold over the long term, rather than being evident within days, weeks, or even months. It will likely take years to fully gauge the effects and consequences of ETF integration on the Bitcoin market.

Bitcoin’s Bullish Structure Remains Intact

Amidst the ongoing selling pressure, several support lines may potentially halt the downtrend and bring positive news for the Bitcoin price and BTC bulls.

Although Bitcoin has already lost its $44,000 support level, there is another crucial threshold at $42,700 that could prevent further decline. If this level holds, there is a chance for Bitcoin to regain the $43,000 mark and reverse the downward momentum.

Bitcoin price

If the $42,700 support is breached, additional support lines come into play. These include $42,300, $41,700, and $41,200, which act as the last barriers before a potential test of the $40,000 support level. The $40,000 mark holds significance as it represents the final support before a potential dip towards $38,000.

However, there is a positive aspect for Bitcoin bulls to consider. The current bullish structure of the cryptocurrency remains intact as long as the dip does not breach the $29,900 mark.

This level marked the beginning of the current bullish uptrend, and its preservation would ensure the maintenance of the overall positive market structure.

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin ETF Approval Triggers $1.2 Billion Trading Volume And New Highs For BTC Price

In a highly anticipated move, the United States Securities and Exchange Commission (SEC) approved all 11 Bitcoin ETF applications, and the market response has been nothing short of remarkable. The approval has led to significant trading volume and propelled Bitcoin to a new 22-month high.

Within minutes of the Bitcoin ETFs going live, Bitcoin surged over 8% to reach $48,400, representing a new record since the end of the crypto bear market. The early price movement aligns with the predictions made by the majority of experts in the crypto industry.

Bitcoin ETF Trading Makes Spectacular Debut

Bloomberg ETF expert James Seyffart reported an astonishing $1.2 billion in trading volume for spot Bitcoin ETFs within 30 minutes of trading. Seyffart captured the excitement with his “Cointucky Derby” analogy, highlighting the performance of different ETFs.

Grayscale’s GBTC Bitcoin Trust took the lead in the “Cointucky Derby,” recording an impressive trading volume of $446 million in the initial minutes. It was closely followed by BlackRock’s Bitcoin Trust, which achieved a trading volume of $388 million within the first half-hour.

Bitcoin ETF

Fidelity secured the third spot with a trading volume of $230 million, outperforming Hashdex and Wisdom Tree, which recorded $1 million and $1.1 million in trading volume, respectively.

While the exact breakdown of the trading volume remains uncertain, Seyffart noted that the evening’s data might provide more insights. 

However, the Bloomberg ETF expert speculated that a significant portion of the trading volume could be attributed to new flows into the ETFs. Additionally, he suggested that a notable portion of GBTC’s trading volume might be due to outflows.

Is Bitcoin On A Clear Path To $50,000?

With the Bitcoin ETF race in full throttle, Bitcoin appears to be on a promising trajectory toward the $50,000 milestone, which could serve as a significant catalyst for Bitcoin bulls and the broader crypto industry.

Currently, having surpassed the $48,000 mark, Bitcoin’s price has reached a level where minimal resistance levels are hindering its ascent to $50,000. 

The next notable hurdle lies well above $50,700, followed by potential attempts to reach $53,000. Given the expected spot buys in the Bitcoin market following the approval of Bitcoin ETFs, combined with a considerable separation between major resistance lines, these price levels may be easily breached.

Once beyond the $50,000 threshold, Bitcoin could potentially progress to $51,000, then $53,000, and subsequently $56,000, before ultimately setting its sights on the highly anticipated $60,000 milestone. 

This series of price targets may be readily attainable for the largest cryptocurrency in the market, as it navigates through the anticipated market dynamics.

Ultimately, the SEC’s approval of the Bitcoin ETFs has brought renewed optimism to the market, with investors and industry experts closely monitoring the impact of these ETFs on the broader cryptocurrency landscape. 

The surge in trading volume and Bitcoin’s impressive price movement signify growing interest from investors seeking regulated and traditional investment avenues in the cryptocurrency market.

Bitcoin ETF

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin ETF Approval Triggers $1.2 Billion Trading Volume And New Highs For BTC Price

In a highly anticipated move, the United States Securities and Exchange Commission (SEC) approved all 11 Bitcoin ETF applications, and the market response has been nothing short of remarkable. The approval has led to significant trading volume and propelled Bitcoin to a new 22-month high.

Within minutes of the Bitcoin ETFs going live, Bitcoin surged over 8% to reach $48,400, representing a new record since the end of the crypto bear market. The early price movement aligns with the predictions made by the majority of experts in the crypto industry.

Bitcoin ETF Trading Makes Spectacular Debut

Bloomberg ETF expert James Seyffart reported an astonishing $1.2 billion in trading volume for spot Bitcoin ETFs within 30 minutes of trading. Seyffart captured the excitement with his “Cointucky Derby” analogy, highlighting the performance of different ETFs.

Grayscale’s GBTC Bitcoin Trust took the lead in the “Cointucky Derby,” recording an impressive trading volume of $446 million in the initial minutes. It was closely followed by BlackRock’s Bitcoin Trust, which achieved a trading volume of $388 million within the first half-hour.

Bitcoin ETF

Fidelity secured the third spot with a trading volume of $230 million, outperforming Hashdex and Wisdom Tree, which recorded $1 million and $1.1 million in trading volume, respectively.

While the exact breakdown of the trading volume remains uncertain, Seyffart noted that the evening’s data might provide more insights. 

However, the Bloomberg ETF expert speculated that a significant portion of the trading volume could be attributed to new flows into the ETFs. Additionally, he suggested that a notable portion of GBTC’s trading volume might be due to outflows.

Is Bitcoin On A Clear Path To $50,000?

With the Bitcoin ETF race in full throttle, Bitcoin appears to be on a promising trajectory toward the $50,000 milestone, which could serve as a significant catalyst for Bitcoin bulls and the broader crypto industry.

Currently, having surpassed the $48,000 mark, Bitcoin’s price has reached a level where minimal resistance levels are hindering its ascent to $50,000. 

The next notable hurdle lies well above $50,700, followed by potential attempts to reach $53,000. Given the expected spot buys in the Bitcoin market following the approval of Bitcoin ETFs, combined with a considerable separation between major resistance lines, these price levels may be easily breached.

Once beyond the $50,000 threshold, Bitcoin could potentially progress to $51,000, then $53,000, and subsequently $56,000, before ultimately setting its sights on the highly anticipated $60,000 milestone. 

This series of price targets may be readily attainable for the largest cryptocurrency in the market, as it navigates through the anticipated market dynamics.

Ultimately, the SEC’s approval of the Bitcoin ETFs has brought renewed optimism to the market, with investors and industry experts closely monitoring the impact of these ETFs on the broader cryptocurrency landscape. 

The surge in trading volume and Bitcoin’s impressive price movement signify growing interest from investors seeking regulated and traditional investment avenues in the cryptocurrency market.

Bitcoin ETF

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Price Forecast: Analysts Caution Against Missing Out As BTC May Surge To $500k With ETF Launch

As the Bitcoin price has regained previously lost territory, following reports suggesting that the US Securities and Exchange Commission (SEC) would reject the long-awaited Bitcoin spot exchange-traded funds (ETFs), new developments have reignited hopes among investors. 

Although the approval of these index funds is not expected to occur on Friday, sources indicate that the upcoming week may bring positive news. 

ETF Approval To Drive Gradual Bitcoin Price Surge To $500,000

FOX journalist Eleanor Terret reports that amended 19b-4 filings and last-minute phone calls regarding comments on S-1s and possible launch dates are expected in the coming days. 

While approvals seem likely in the next week, according to Terret, the timeline ultimately depends on the SEC’s ability to review the comments and amendments submitted efficiently. 

Terret describes the current situation as a meticulous process of “dotting the i’s and crossing the t’s,” emphasizing the attention to detail required for regulatory clearance. 

On the other hand, crypto analyst Adam Cochran offers valuable insights into the potential impact of Bitcoin ETFs, as all signs point to the imminent approval of these investment products.

Cochran suggests that many may “overestimate” the short-term effects of ETF approval while underestimating its long-term implications. In the immediate aftermath, market flows may not witness a significant surge. However, Cochran believes that investment advisors will review their clients’ portfolios over the next year and recommend diversifying even a small percentage, such as 1%, into the ETF. 

Cochran emphasizes that the Bitcoin price performance, with a remarkable 157% return in the latter half of 2023, will be a key factor driving investor interest. 

Cochran envisions a gradual upward trajectory for the Bitcoin price, characterized by persistent growth and occasional market volatility. 

Ultimately, Cochran’s long-term forecast indicates a potential Bitcoin price surge to $500,000 per coin, leaving sidelined investors regretfully waiting for a substantial market correction. Cochran further noted:

Also, ETFs result in spot buys, not leverage, which improves system health. And are long-term holders, less likely to sell volatility. So it creates a slow grind up of underlying market health. Like the best DCA you could ask for. 

Bitcoin ETF Pricing Potential Not Fully Realized

Crypto analyst Ali Martinez suggests that the pricing potential of a Bitcoin ETF may not have been fully realized, providing insight into the current state of the Bitcoin market.

Martinez points to a decline in the estimated leverage ratio across all exchanges, reaching a two-year low. This indicates that Bitcoin traders are adopting a more cautious approach, reducing their use of borrowed funds as they await regulatory clarity on the ETF. 

Furthermore, Martinez emphasizes the significance of Bitcoin’s price above $41,800. According to Martinez, Bitcoin’s ability to maintain its position above $41,800 is crucial for establishing a bullish outlook. 

This level is reinforced by approximately 2.41 million addresses holding over 1 million BTC, creating a substantial support zone. 

Bitcoin price

The significant number of addresses with substantial Bitcoin holdings suggests a strong interest in maintaining the cryptocurrency’s value and provides a foundation for market stability. Martinez notes that the resistance levels ahead for Bitcoin appear relatively minor. This implies that fewer significant barriers are impeding potential price increases. 

With reduced resistance, the market conditions become more favorable for stable or rising prices, further supporting the bullish sentiment.

Bitcoin price

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin Price Targets: MVRV Points To $52,000 And $70,000 Levels For BTC, Expert Suggests

In a recent development, the Bitcoin price witnessed a remarkable surge of 7% within 24 hours, reaching a high point of $45,300. This significant price increase coincides with the anticipation surrounding the potential approval of a Bitcoin spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). 

In addition, market experts, backed by multiple models aligning to indicate increased price action and bullish momentum, suggest that Bitcoin could soon reach the $50,000 level and potentially establish a new all-time high (ATH).

Bitcoin Price Poised To Reach New All-Time High? 

At the forefront of this analysis is Ali Martinez, a renowned crypto analyst, who emphasizes the valuable insights provided by the Bitcoin Market Value to Realized Value (MVRV) pricing bands. 

These bands serve as a metric to analyze the price movement and potential levels of Bitcoin, or any other cryptocurrency, by comparing the market value to the average value at which coins were last moved on-chain. The MVRV ratio assesses whether Bitcoin is overvalued or undervalued relative to its historical on-chain activity. 

A high MVRV ratio suggests that the market value of Bitcoin has surpassed the average value at which coins were last moved, indicating a potential overvaluation. Conversely, a low MVRV ratio may indicate that Bitcoin is undervalued.

Bitcoin price

Considering these factors, Martinez highlights the significance of the MVRV pricing bands, which reveal key price targets for Bitcoin at $52,680 and $70,250, surpassing its previous ATH of $69,000. 

This analysis presents an optimistic outlook for Bitcoin’s future performance and reinforces the belief among investors that the cryptocurrency’s upward momentum is likely to continue.

However, despite these Bitcoin price projections that could propel the largest cryptocurrency on the market into uncharted waters, another analyst points to a more prudent prediction.

Cooling Period For BTC? 

According to renowned crypto analyst Crypto Con, despite a year-long bullish stance, he believes it is time for a cooldown as the new year, 2024, begins.

Crypto Con predicts a 30% correction from the directional movement index (DMI) overheat zone, projecting prices around $30,000. The overheat zone mentioned by Crypto Con suggests that the price of Bitcoin has experienced a significant upward movement and may be due to a correction or cooling period. 

Bitcoin price

As seen in the chart above, when the price enters this zone, it is seen as a signal that the trend may have become overextended and could potentially reverse or experience a pullback.

Drawing parallels to the example in 2019, characterized by a double peak in red, Crypto Con anticipates a drawdown that is both smaller in magnitude and shorter in duration. 

Furthermore, the analyst points to the consistent support offered by diagonal green zones throughout each cycle, suggesting a pattern that has been held thus far.

While some analysts project a new all-time high for the Bitcoin price, reaching uncharted waters above $70,000, others, such as Crypto Con, advocate for a cooling period and anticipate a correction in the near term.

Bitcoin price

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Poised For December Surge As Historical Patterns Suggest Strong Upside Ahead

As the eagerly awaited Bitcoin (BTC) exchange-traded fund (ETF) verdict approaches, excitement and anticipation continue to grow in the cryptocurrency market. 

According to a report by K33 Research, the upcoming decision, expected between January 8 and January 10, has been a significant factor behind Bitcoin’s positive momentum since October. Institutional demand remains robust, with traditional investors strongly interested in adding long BTC exposure. 

Bitcoin Set For Bullish December? 

Bitcoin has displayed a notable tendency to surge higher in the lead-up to major events, creating a sense of enthusiasm and driving prices upward. This phenomenon has been observed across various significant milestones in the cryptocurrency’s history. 

According to the report, examples include Bitcoin’s peak coinciding with the launch of the Chicago Mercantile Exchange’s (CME) BTC futures in 2017, its spike coinciding with Coinbase’s public listing in April 2021, and its peak on the day El Salvador declared Bitcoin legal tender in September 2021.

Similarly, Bitcoin reached its peak on the date of VanEck’s spot ETF deadline in November 2021. These instances highlight the potential for Bitcoin to experience significant price movements as the ETF verdict draws near.

The report emphasizes the substantial demand from institutional investors seeking exposure to Bitcoin. BTC exchange-traded products (ETPs) witnessed inflows of nearly 40,000 BTC in November, while CME open interest reached and maintained all-time highs. Futures premiums have also surged to 20%, indicating the strong interest from institutional players. 

In contrast, retail participation has shown signs of stagnation. Offshore flows have remained shallow, and Bitcoin-denominated open interest in BTC perpetual contracts is currently at yearly lows. These factors suggest that institutional flows continue to be the driving force behind Bitcoin’s solid market strength.

Based on the historical pattern of event-driven price movements and the sustained institutional demand, the report maintains a positive outlook for Bitcoin in December. 

As the ETF verdict approaches, K33 Research’s report suggests that the narrowing time window is expected to fuel enthusiasm and drive prices higher. However, it is worth noting that once the event occurs, prices may experience a temporary surge before potentially stabilizing, according to the report. 

 BTC’s Bull Run Indicator

Renowned crypto analyst Ali Martinez has identified a significant development in the Bitcoin market that suggests a bullish outlook for the cryptocurrency. 

According to Martinez, the Realized Price of Bitcoin has surpassed the Long-Term Holder Realized Price, signaling an increase in market momentum and attracting new investors willing to purchase Bitcoin at higher prices. 

Martinez’s analysis highlights that similar occurrences in the past have preceded substantial price surges, further fueling optimism regarding Bitcoin’s future performance. 

Bitcoin

The Realized Price of Bitcoin refers to the average price at which all previously transacted coins were acquired. It considers the price at which each Bitcoin unit was last moved on the blockchain. 

On the other hand, the Long-Term Holder Realized Price focuses specifically on coins held by long-term investors, providing insights into their average acquisition price. When the Realized Price surpasses the Long-Term Holder’s Realized Price, it suggests that newer investors are entering the market and are willing to buy Bitcoin at higher valuations.

As seen in the above chart, Bitcoin experienced significant gains following this bullish signal on three separate occasions in the past. Specifically, the cryptocurrency surged 12,736%, 4,474%, and 819%, respectively, following similar events. 

Bitcoin

In addition to Martinez’s bullish outlook for BTC, the largest cryptocurrency on the market has demonstrated relatively stable price action above $44,000 in the past hour. 

This stability increases the potential for continued upside and consolidation above key levels, positioning Bitcoin for further gains and surges in the future. It remains to be seen if the cryptocurrency will see any corrections following its impressive 16% surge over the past few days. 

Featured image from Shutterstock, chart from TradingView.com 

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SEC Insider: Bitcoin ETF Approval Probability Surges Beyond 99% As BTC Hits Fresh Yearly High

In the countdown to the deadline for the long-awaited Bitcoin ETF applications by major asset managers worldwide, predictions regarding the rate of approval have significantly improved. 

Inside sources from the US Securities and Exchange Commission (SEC) indicate that Bloomberg’s initial 90% chance prediction of approval has now surged beyond 99%. 

This development has heightened the excitement surrounding this investment vehicle, which has the potential to bring substantial inflows of capital into the Bitcoin market and further amplify its year-to-date gains of over 153%.

Market Sentiment Soars As Bitcoin ETF Approval Probability Surpasses 99%

Andrew, an SEC insider, shared an update on X (formerly Twitter), stating that the 99% probability of a Spot Bitcoin ETF being approved is no longer deemed high enough. 

While acknowledging that nothing is ever certain, the source emphasized that the current likelihood of approval surpasses the 99% estimate from the previous week.

The sentiment in the market is clearly reflected in the price movement of Bitcoin, as it continues to establish new yearly highs and display unwavering bullish momentum. 

Currently trading at $42,900, Bitcoin recently reached a fresh annual peak of $43,400 on Tuesday. Over the past 24 hours, the largest cryptocurrency has surged by 4%, and it has witnessed a remarkable increase of over 14% in the past seven days.

Bitcoin ETF

It is worth noting that the prospect of a Bitcoin ETF being approved has captured the attention of investors and industry participants alike. If approved, the ETF would provide a regulated and accessible investment vehicle for institutional and retail investors, potentially bringing significant liquidity to the cryptocurrency market. 

The spike in approval forecasts to over 99% has further fueled optimism that this milestone decision is imminent. While nothing can be guaranteed, the growing confidence in Bitcoin ETF approval and the cryptocurrency’s impressive price performance underscores the potential for a significant positive impact on the market. 

As the final deadline approaches, market participants eagerly await the SEC’s decision, anticipating a potential game-changer for the Bitcoin ecosystem and its ongoing growth.

BTC Faces Crucial Range High Resistance

Renowned crypto analyst Rekt Capital has shed light on Bitcoin’s recent price action, emphasizing the significance of key support and resistance levels within a specific price range. 

In late November, Rekt Capital identified a range between $36,120 and $43,200, highlighting the importance of the lower boundary for a potential upward move.

Bitcoin successfully tested and held the range’s lower boundary as support, resulting in a substantial rally in recent days. The primary objective now, according to Rekt, is to revisit the upper boundary, known as the black $43,900 range high resistance, as seen in the chart below.

Bitcoin ETF

Rekt Capital underscores the importance of the black Range High resistance as a crucial reference point for Bitcoin’s price. During the parabolic phase of the 2021 Bull Market, Bitcoin managed to break above this level relatively easily. 

On two occasions, the cryptocurrency surged beyond the black level, with the first instance followed by a retest of the level as a new support, leading to further upward momentum. 

The second instance occurred later in the year when Bitcoin successfully retested the black level as short-term support before continuing its ascent.

However, late in 2021, Bitcoin lost the black level as support (first red circle from the left) and experienced a fake breakout above it, subsequently entering a multi-week downtrend. 

Rekt Capital highlights that Bitcoin’s historical performance suggests the cryptocurrency needs to successfully retest the black $43,900 level as support to pave the way for further upward movement.

Featured image from Shutterstock, chart from TradingView.com 

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Bloomberg Expects Bitcoin Price To Surpass $500,000 In Upcoming Crypto Super Cycle

In a recent Bloomberg report, it has been suggested that the rise of Bitcoin price to over $42,000 is just the beginning of a new crypto super cycle that will push the world’s largest cryptocurrency to over $500,000.

According to Bloomberg, proponents of this theory argue that Bitcoin represents a new monetary order that is captivating Wall Street and fueling a “palpable sense of euphoria” within the digital asset community.

Bitcoin Price Potential Soars

The remarkable performance of the Bitcoin price in recent months took many by surprise, as the cryptocurrency posted three consecutive monthly increases, including another 11 percent in December alone. 

The enthusiasm surrounding Bitcoin’s price rally has led to optimistic predictions of further gains, often based on intuition or technical analysis.

The cryptocurrency has experienced a significant price revival in 2023, with its value surging over 150% thus far. Market observers attribute this surge to growing anticipation of a potential approval of a Bitcoin exchange-traded fund (ETF) for trading in the United States. 

Per the report, the prospect of an ETF has led to jubilation within the industry. Coinbase CEO Brian Armstrong suggests that “Bitcoin may be the key to extending Western civilization.” Forecasts regarding the future price of Bitcoin have ranged from $50,000 in the immediate term to above $530,000.

Matt Maley, chief market strategist at Miller Tabak & Co., cautions about the rapidly changing sentiment in the asset class, highlighting the importance of the liquidity influx caused by the pandemic in driving Bitcoin’s strong rally in 2020 and 2021. 

Maley suggests that without a similar liquidity injection, some of the optimistic predictions surrounding Bitcoin’s future value may be unrealistic.

The long-awaited launch of a Bitcoin-based ETF in the United States aims to facilitate easier access to the cryptocurrency for money managers, potentially attracting billions of dollars in new investments to the space. 

BTC ETF Speculation Sparks Optimism 

Researchers at Kaiko note a noticeable shift in the market sentiment since mid-October, driven by increasing institutional interest in the potential approval of a spot BTC ETF and a more favorable macroeconomic environment. 

The researchers also highlight recent inflows into crypto investment products and a seven-month high in daily spot-trading volumes in November.

Nevertheless, while excitement about a broader crypto rally often spreads across social media platforms like X (formerly known as Twitter), it is important to acknowledge Bitcoin’s historical volatility. 

According to Bloomberg, the cryptocurrency has experienced multiple hype cycles in recent years, with celebrated gains followed by significant downturns. 

Bitcoin price

Despite Bitcoin’s recent gains and departure from a prolonged consolidation phase, Bloomberg suggests that a significant correction may still be on the horizon. At present, Bitcoin is trading at $41,800, displaying sustained bullish momentum as it strives to reclaim the $42,000 level. 

The outcome remains uncertain whether the cryptocurrency will successfully consolidate above this critical level, positioning it favorably for continued upward movement throughout the month. 

Alternatively, the current yearly high level could act as a formidable resistance barrier for the Bitcoin price, further supporting Bloomberg’s thesis of a potential correction. 

Featured image from Shutterstock, chart from TradingView.com

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MicroStrategy Boosts Bitcoin Holdings With $590 Million Purchase, Totaling 174,530 BTC

In a testament to its unwavering confidence in Bitcoin (BTC), MicroStrategy, one of the largest Bitcoin holding companies, has once again expanded its cryptocurrency portfolio. 

The company’s former CEO, Michael Saylor, announced the acquisition of an additional 16,130 BTC, valued at approximately $593 million. This strategic move comes as Bitcoin enters a phase of accumulation above the $37,000 mark.

MicroStrategy Adds To Bitcoin Stash

As announced, MicroStrategy’s latest purchase was made at an average price of $36,700 per Bitcoin. With this acquisition, the company’s total Bitcoin holdings now stand at an impressive 174,530 BTC. 

Throughout 2023 and previous years, MicroStrategy has consistently demonstrated its commitment to BTC, accumulating a substantial amount of the cryptocurrency. 

The total cost of MicroStrategy’s Bitcoin investments exceeds $5.20 billion, with an average purchase price of $30,252 per Bitcoin. This significant investment reflects the company’s long-term bullish outlook on Bitcoin’s potential as a store of value and hedge against inflation.

As reported by NewsBTC, the company has reaped substantial gains from the recent uptrend in the overall cryptocurrency market and Bitcoin’s impressive price surge. With BTC experiencing a 36% increase since October, Microstrategy has now amassed over $1 billion in unrealized profits.

Bitcoin

Notably, Bitcoin’s positive performance has directly impacted Microstrategy’s stock, traded under the ticker name MSTR. The stock has witnessed a significant surge in value, closely tied to the ongoing bullish momentum of BTC. 

On November 9, as Bitcoin reached its previous yearly high of $38,000, the price of MSTR stock also soared to an all-time high (ATH) of $533 per share. This milestone further proves Microstrategy’s successful investment strategy over the past three years.

Michael Saylor, a prominent advocate for Bitcoin, has been a vocal proponent of the cryptocurrency, emphasizing its superior qualities compared to traditional fiat currencies. 

MicroStrategy’s continued accumulation of Bitcoin reinforces Saylor’s conviction in its long-term prospects and serves as a testament to the company’s belief in the digital asset’s store-of-value properties.

Potential For Short-Term Pullback Looms

In a recent market update by the CryptoQuant author IT Tech, short-term insights on the Bitcoin derivatives market shed light on the current upward momentum and the potential for a minor pullback. 

According to the analysis, the ongoing upward momentum in the Bitcoin market heavily relies on perpetual movement. The rising price of Bitcoin has been a key driving force, contributing to the bullish sentiment. 

However, the Crypto Volatility Divergence (CVD) Spot indicator suggests a relatively flat movement in spot demand. This indicates that a significant increase in immediate spot demand may not support the current price surge.

In the absence of strong spot demand materializing in the market, IT Tech suggests a possible minor pullback in the near term. 

This potential pullback could be attributed to several factors, including profit-taking by traders or a lack of sustained buying pressure from spot investors.

Bitcoin

The analysis also highlights the possibility of Bitcoin liquidations in the short term, which could indicate further upward movement to liquidate late short positions. 

This suggests that additional buying pressure may be from those who have taken short positions on Bitcoin. As these shorts are liquidated, it could continue the upward trend.

Bitcoin

As of the latest update, Bitcoin (BTC) is trading at $37,600, showing a slight decrease of 0.5% over the past 24 hours. However, it has maintained a gain of 1.5% over the past seven days, indicating a period of consolidation for the cryptocurrency

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin Eyes New Highs As Bloomberg Analyst Reiterates 90% Chance Of January ETF Approval

Bitcoin (BTC), the leading cryptocurrency, is currently in an upward accumulation phase, inching closer to surpassing its current yearly high of $38,390. 

This upward trend is further fueled by the anticipation surrounding the approval of Bitcoin spot exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC).

Bitcoin ETF Approval By January 10

In a recent post on X (formerly Twitter), Erich Balchunas, a Bloomberg ETF expert, shared his perspective on the probability of Bitcoin ETF approval. Balchunas maintains a 90% chance of SEC approval by January 10, which has remained consistent for months. 

Balchunas highlights that while debates over specific dates and timelines persist, the SEC and issuers are diligently working behind the scenes to make ETFs ready for this cycle, defying earlier skepticism. Balchunas stated: 

People asking me if we changed odds. No, we still holding line at 90% odds of approval by Jan 10 (aka this cycle), the same odds we’ve had for months (before it was cool/safe). What we watching for now: more amended/final filings to roll in and clarity on in-kind vs cash creates

As predicted by many analysts, Bitcoin is poised for a potential breakout in the upcoming months, both before and after these investment products’ anticipated approval. As reported by NewsBTC, Bitcoin could surge to as high as $50,000 even before the halving event forecasted for April.

In this context, Bitcoin must maintain its position above the key support level of $35,000. This mark serves as a threshold for future gains, both preceding and succeeding the approval of spot ETFs. 

Upholding this support level will be instrumental in determining Bitcoin’s prospects for continued growth and market performance.

Next Resistance Level Holds Key To Surpassing All-Time High

Renowned crypto analyst Crypto Con has shed light on the remarkable strength of the current Bitcoin cycle, drawing comparisons to the previous from 2019 to 2022. 

By examining key resistance levels and price movements, Crypto Con emphasizes the positive outlook for Bitcoin’s price trajectory and suggests that the current cycle is poised for success.

Crypto Con highlights the prolonged weakness observed during the 2019-2022 Bitcoin cycle, characterized by Bitcoin’s struggle to surpass the initial Wave Trend resistance over a year. 

In contrast, the current cycle has demonstrated impressive resilience, effortlessly breaking through this resistance level.

Despite the substantial rise in Bitcoin’s price, Crypto Con points out that the cryptocurrency has yet to reach the next resistance level, called green zone 2, with a price target of $40,000. 

Bitcoin

In a typical cycle, this milestone does not indicate the end of price action but rather marks the beginning of a more significant upward trajectory.

Crypto Con further suggests that subsequent resistance levels, indicated by the color blue in the chart above, can drive Bitcoin’s price even higher, surpassing its previous all-time high.

Bitcoin

At the time of writing, BTC is trading at $37,700, down 0.7% over the past 24 hours, and it remains to be seen if a consolidation above $38,000 will occur.

 Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Storms Past $38,000 Once More, Anticipating Breakout To New Annual Peak

Bitcoin (BTC) has again demonstrated its bullish momentum by surging above the $38,000 mark. Breaking free from the recent trading range between $36,500 and $37,500, BTC currently trades at $38,100, slightly below its yearly high of $38,400 achieved on Friday, November 24. However, this is just one of the many milestones BTC has achieved during its ongoing bullish resurgence.

Bitcoin Achieves New 52-Week Closing Record

According to crypto trading firm The Birb Nest, Bitcoin has set a new 52-week closing record by a small margin, holding above $32,000 for four consecutive weeks, demonstrating the continued strength of the uptrend. 

Per the firm’s analysis, the observed performance aligns with the principles of Elliott Wave Theory and signifies the presence of the third wave within the ongoing bull market.

Notably, of the five waves outlined in the theory, the third impulse wave is a visually captivating and crucial element of the overall pattern.

Bitcoin

Following the consolidation phase of the second wave that Bitcoin experienced between August and October, as seen on the 1-day chart of BTC above, the emergence of the third wave is characterized by a breakout that drives price action in line with the prevailing trend.

In particular, this wave is known for its extended nature, which often exceeds the length of the first wave, which began at the beginning of January 2023 for BTC.

The third wave exhibits a substantial extension relative to the length of the initial wave, typically reaching the 161.8% Fibonacci level. In simpler terms, the third wave can be interpreted as a 161.8% Fibonacci extension of the first wave.

Solid Support Levels Reinforce Positive Outlook For BTC 

According to The Birb Nest, key technical indicators further support Bitcoin’s market momentum. The 200-week moving average (MA) at $29,130 and the 50-week MA at $27,450 serve as solid support levels, reinforcing the positive outlook for the cryptocurrency.

Additionally, Bitcoin’s correlation coefficient has risen to 0.75, indicating an increased synchronization with the performance of the S&P 500. This correlation can be viewed as a positive sign, particularly as the S&P 500 and Nasdaq enter their ‘Best Months’ strategy, which historically has been associated with market gains.

Furthermore, the firm believes that anticipation surrounding the upcoming Bitcoin halving event and the potential approval of a Bitcoin spot exchange-traded fund (ETF) is fueling investor interest. These factors hint at the potential for further market upturns and provide an optimistic outlook for Bitcoin’s future.

It remains to be seen if the current bullish momentum will be sustained and if BTC can consolidate above $38,000 and target the $40,000 level yet to be reached in 2023.

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin Sees Influx Of Over $1.5 Billion In 2023: Price Surge Aims For $43,000

Amidst the regulatory scrutiny and enforcement actions faced by the cryptocurrency industry, Bitcoin (BTC), the leading cryptocurrency by trading volume, has remained resilient and maintained its consolidation level between $36,000 and $37,000. It reached a new record for the year, surging to a new yearly high of $38,390 on Friday.

$312 Million Inflows Amid Spot-Based ETF Expectations

The latest report from CoinShares provides further evidence of Bitcoin’s robustness. Despite concerns that the regulatory feud involving Binance might trigger a sell-off of BTC, the report reveals a significant influx of capital into digital asset investment products. 

Last week, these products witnessed a notable inflow of $346 million, marking the largest weekly inflows observed during a nine-week consecutive run.

The CoinShares report highlights that the surge in inflows can be attributed to the anticipation surrounding the potential launch of a spot Bitcoin exchange-traded fund (ETF) in the United States, which has been eagerly awaited by investors but delayed by the US Securities and Exchange Commission (SEC).

Interestingly, this surge is the largest since the bull market of late 2021. CoinShares reports that the combination of rising prices and inflows has pushed total Assets Under Management (AuM) to $45.3 billion, the highest level seen in over a year and a half.

Bitcoin

Bitcoin’s inflows last week amounted to $312 million, bringing year-to-date inflows to just over $1.5 billion. Meanwhile, short-sellers are capitulating, with outflows totaling $0.9 million for the third consecutive week. 

Since the peak in April 2023, AuM has declined by 61%. The use of exchange-traded Products (ETPs) to gain exposure to the asset class remains significant, with ETP volumes representing 18% of total spot Bitcoin volumes last week.

Ethereum (ETH) also experienced a positive shift in sentiment, with inflows of $34 million last week and a four-week run of $103 million. This marks a turnaround from the outflows observed earlier this year. 

Furthermore, other cryptocurrencies such as Solana (SOL), Polkadot (DOT), and Chainlink (LINK) saw inflows totaling $3.5 million, $0.8 million, and $0.6 million, respectively.

Ichimoku Cloud Predicts Bitcoin Surge To $43,000

In a bold prediction backed by technical analysis, renowned crypto analyst “Crypto Con” suggests that Bitcoin (BTC) is poised for a significant surge in the coming weeks. 

Crypto Con claims to have accurately predicted BTC’s previous rise to $38,000 two months before it occurred, using the weekly Ichimoku cloud. Now all eyes are on the completion of the current upward move, with the initial target set at $43,000.

For further context, the Ichimoku cloud is a popular technical indicator used to gauge potential future price trends and identify key support and resistance levels. According to Crypto Con, the weekly Ichimoku cloud has projected a bullish cross shortly, indicating that Bitcoin’s upward trajectory is far from over.

Bitcoin

Based on historical data, Crypto Con notes that the completion of previous Bitcoin rallies following a similar cross has taken anywhere from 7 to 11 weeks, with an average duration of 10 weeks. Consequently, the analyst expects the current move to culminate in early January.

When the rise reaches its peak, Crypto Con suggests that the top of the red cloud, a key feature of the Ichimoku cloud, becomes the primary target. While the analyst identifies $43,200 as the most conservative level for this target, Crypto Con asserts that the red cloud’s true top could reach as high as $48,000.

Bitcoin

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin Bulls Buckle Up: Seasonal Trends Point To $50,000 Target

Bitcoin (BTC), the largest cryptocurrency on the market, has again failed to consolidate and reach the $38,000 level for the third time, as it is currently experiencing a 3% pullback. This has led the community to speculate that a significant retracement may occur before the bullish momentum resumes and the next uptrend begins. 

However, renowned crypto analyst Adrian Zduńczyk has recently shed light on Bitcoin’s potential next target of $50,000. Zduńczyk’s analysis considers several crucial factors, including the prevailing bullish market sentiment, the ongoing uptrend, the short-term outlook, miner sentiment, and seasonal trends. 

Evidence Of Dominant Bull Market

Zduńczyk notes that the cryptocurrency industry is in a bull market, with Bitcoin reaching a new 52-week high close and experiencing the third wave of the bullish cycle. The correlation between Bitcoin and the S&P 500 has risen, indicating a favorable environment for Bitcoin. High time frame trends are also rising.

Zduńczyk identifies key macro support levels for Bitcoin at $29,000 and $27,000, highlighting growing demand fueled by the anticipation of the approval of spot Bitcoin exchange-traded funds (ETFs) and the upcoming halving event expected in April 2024.

Notably, the daily chart for BTC remains in an uptrend, according to Zduńczyk. He points to a target of $40,000, supported by the appearance of a “golden cross” pattern.

Furthermore, Zduńczyk believes that the rising Simple Moving Average (SMA) 200 serves as “irrefutable evidence” of a dominant bull market since January. These indicators suggest a continuation of the upward trajectory for Bitcoin.

Zduńczyk also identifies key support levels at $35,000 to $35,800, emphasizing that a bullish sentiment prevails as long as Bitcoin remains above these levels. 

Zduńczyk Eyes Bitcoin November Target Of $50,000

Currently, Bitcoin is ranging between $35,500 and $38,000, Zduńczyk notes that the momentum bands are widening, indicating an increase in volatility. The rising 50-day Average True Range (ATR) trend supports this observation.

Fear & Greed Index stands at 69, indicating a mixed sentiment among market participants. Miners, on average, are enjoying a profit increase of 23%. Zduńczyk maintains a positive outlook based on these factors. 

Regarding seasonal trends, October demonstrated a gain of 27%, exceeding the average performance. Historically, November has been the best month for Bitcoin, which has an average gain of 43%, with a target of around $50,000. Notably, December typically adds 7% to November’s closing price.

Bitcoin

Currently, BTC is trading at $36,400, reflecting a 5% and 22% profit over the past fourteen and thirty days, respectively. The focus now shifts to whether BTC’s price can maintain its crucial support levels and sustain its bullish uptrend, potentially reaching the $50,000 milestone supported by historical patterns.

Featured image from Shutterstock, chart from TradingView.com 

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CoinShares Predicts $141,000 Bitcoin Price, Forecasts $14.4 Billion Inflows From ETFs

In a recently published report by CoinShares, analyst James Butterfill delves into the relationship between inflows into Bitcoin exchange-traded funds (ETFs) and changes in the Bitcoin price. 

The report addresses the critical question of how much inflow into ETFs could be anticipated upon launching a Bitcoin spot ETF in the US and the potential impact of these flows on the Bitcoin Price.

Bitcoin ETFs Could Attract $14.4 Billion Inflows

Butterfill highlights Galaxy’s analysis, which estimates that the United States has approximately $14.4 trillion in addressable assets. Assuming a conservative scenario where 10% of these assets invest in a spot Bitcoin ETF with an average allocation of 1%, it could result in approximately $14.4 billion of inflows within the first year. 

Per the report, this would mark the largest inflows on record, surpassing 2021’s inflows of $7.24 billion, which accounted for 11.5% of assets under management (AuM). 

However, it is worth noting that in 2020, inflows reached $5.5 billion, representing a higher 21.6% of AuM, while Bitcoin’s price surged by 303% compared to 60% in 2021.

The report suggests a correlation between inflows as a percentage of AuM and price changes. Inflows coincide with rising prices, indicating that many ETF investors engage in momentum trading. Conversely, during periods of price stagnation, inflows have tended to moderate. 

However, it is important to note that exchange-traded product (ETP) investors do not necessarily lead price action, as evidenced by volume data indicating that ETP volumes represent an average of 3.5% of daily Bitcoin trading turnover on trusted exchanges since 2018.

Bitcoin Price Surge Predicted

By analyzing weekly ETP flows and their percentage of AuM, the report identifies a trend with a coefficient of determination (R2 ) value of 0.31, suggesting a discernible relationship between flows and price changes. 

Utilizing this trendline, the report estimates that the aforementioned $14.4 billion of inflows could potentially drive the price of Bitcoin up to $141,000 per coin.

Nevertheless, accurately predicting the precise level of inflows upon the launch of spot ETFs remains challenging. The report acknowledges the difficulty in determining the exact magnitude of inflows. 

It emphasizes that regulatory approval and corporate acceptance are gradual processes due to Bitcoin’s perceived complexity, which may require corporations and funds to build knowledge and confidence before committing to investment.

The potential wall of demand that could materialize following the introduction of a spot-based ETF is uncertain. While such ETFs offer portfolio diversification and enhanced Sharpe ratios, regulatory approval and corporate adoption may take time due to perceived complexities associated with Bitcoin. 

Ultimately, CoinShares believes that Corporations and funds may require an extended period to familiarize themselves with the asset class and gain confidence before entering the market.

All in all, the CoinShares report sheds light on the potential impact of Bitcoin ETFs on the price of BTC. While it is challenging to precisely determine the level of inflows and their subsequent effect on the market, the report suggests that launching a Bitcoin spot ETF in the US could potentially drive the price of Bitcoin to US$141,000 per coin. 

Bitcoin Price

Currently, Bitcoin (BTC) is consolidating above the significant psychological level of $36,000. Over the past 24 hours, it has experienced a minimal decrease of 0.2%, while showing a 1.3% increase within the 1-hour time frame.

Featured image from Shutterstock, chart from TradingView.com 

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Bearish Divergence? Bitcoin Price Rises, But Network Growth Sends Warning Signals

The recent Bitcoin (BTC) price surge has ignited renewed interest and confidence among investors, leading many to believe that the BTC bull run is accelerating. 

According to trader and crypto analyst Adrian Zduńczyk, Bitcoin has reached a new 52-week closing high and has maintained a close above the previous high of $32,000 for three consecutive weeks. 

This sustained upward momentum indicates a strong bullish trend sentiment and signals the beginning of the third wave of the Bitcoin bull run.

Analyst Highlights Key Trends

Zduńczyk points out several dominant trends that contribute to the positive outlook for Bitcoin. The rising 200-week and 50-week moving averages (MAs) highlight the long-term uptrend strength, with key support levels at $28,800 and $26,600. 

Additionally, there is a growing correlation with the S&P 500, as evidenced by the 7-week correlation coefficient of 0.34. This alignment with traditional markets suggests that Bitcoin increasingly trades similarly to the Nasdaq.

Fundamental drivers also play a significant role in Bitcoin’s upward trajectory. Traders eagerly anticipate the approval of spot Bitcoin exchange-traded funds (ETFs) and the upcoming fourth halving event. 

Furthermore, according to Zduńczyk, the historical pattern of previous halvings indicates that Bitcoin has rallied significantly after each halving and has never retraced to pre-halving prices. 

Examining the daily trend, Zduńczyk highlights the technical strength demonstrated by Bitcoin’s reliable breakout above $32,000. Breakouts often lead to new trend formations that persist over time. 

Despite occasional volatility, the 50-day average true range (ATR) trend and the 50-day relative strength index (RSI) momentum trend are rising, indicating ongoing positive momentum.

Bitcoin’s future appears promising, supported by positive market trends, fundamental drivers, and technical indicators. However, warning signs cast doubt on Bitcoin’s favorable outlook, as renowned crypto analyst Ali Martinez pointed out. 

Bitcoin Bullish Momentum At Risk?

Martinez draws attention to the bearish divergence between Bitcoin’s price and network growth, indicating a potential lack of sustained momentum in the ongoing uptrend.

Bitcoin

The chart above shows a notable disparity between the exponential rise in Bitcoin’s price and the dramatic decline in new addresses over recent days. 

This bearish divergence raises concerns about the overall strength of the current uptrend. While Bitcoin’s value has experienced significant gains, the number of new addresses created has decreased significantly.

According to Martinez, this bearish divergence between Bitcoin’s price and network growth serves as an on-chain sell signal that traders should be aware of. The slowdown in network growth despite the price surge suggests that the current upward momentum may not have enough strength to sustain.

Bitcoin

At the time of writing, BTC is trading at $36,200, down 1.6% over the past 24 hours. However, it is still up a substantial 4.6% over the past 7 days. 

It remains to be seen if a surge in new addresses will be able to support BTC’s bullish momentum and break the current consolidation phase. Alternatively, the cryptocurrency could retest support levels in the coming days.

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Bullish Momentum Reignites: RSI Signals Potential Surge To $65,000

After experiencing a brief correction from its new yearly high of $35,300, Bitcoin (BTC), the leading cryptocurrency in the market, is showing signs of renewed bullish momentum. 

As the digital asset approaches the $35,000 mark again, a key indicator is following patterns observed in 2020, suggesting a potential surge that could propel Bitcoin to reclaim its previous peak of $65,000. 

Scott Melker, a prominent crypto investor and host of the ‘Wolf of All Streets’ podcast, notes the significance of Bitcoin’s overbought Relative Strength Index (RSI) on both lower time frames and the weekly chart, hinting at a promising trajectory for the cryptocurrency’s price.

BTC’s 2020 RSI Flashback

Bitcoin’s RSI, a widely used technical indicator that measures the strength and speed of price movements, is currently flashing signs of extreme overbought conditions on various lower time frames. 

Notably, the daily RSI stands at 88, indicating a potential need for a healthy retracement. However, the weekly RSI garners attention as it has just entered the overbought zone, a range historically associated with substantial upward movements in a true bull market.

To gain insights into Bitcoin’s potential future trajectory, it is worth revisiting the patterns observed in 2020. 

Bitcoin

According to Melker, during that year, Bitcoin’s RSI went overbought on the weekly chart when the cryptocurrency was trading around $12,000, as indicated by a small blue circle on the bottom left of the chart above. 

Subsequently, Bitcoin embarked on an unprecedented rally, surging to $65,000. This historical precedent highlights the possibility of a similar price action if true bullish catalysts emerge.

With Bitcoin’s weekly RSI entering the overbought territory once again, there is a growing sentiment among market observers that the cryptocurrency has ample room to run. 

Scott Melker emphasizes that if significant bullish catalysts materialize, Bitcoin’s potential for further upside becomes virtually limitless. The current RSI readings hint at the potential for an extended price rally, potentially enabling Bitcoin to surpass its current highs and reach the coveted $65,000 level.

Bitcoin Market Dynamics Shift As Key Indicators Surge

Adding to Melker’s bullish outlook for BTC, crypto analyst Miles Deutscher has stated on X (formerly Twitter) that the Bitcoin market landscape has witnessed a notable shift in recent days, leading to a significant uptick in bullish sentiment. 

In particular, volume and open interest in Bitcoin-related futures and options on the Chicago Mercantile Exchange (CME) have risen to multi-month and multi-year highs, indicating growing interest and participation from institutional investors.

Moreover, call options open interest has surpassed the peak levels seen during the 2021 bull run. In tandem with these developments, average crypto-related stocks have experienced a substantial uptick, and public funds have seen a massive influx of $43 million into Bitcoin, equivalent to 10% of the year-to-date inflows, all within a single day.

These metrics reflect increased trading activity and liquidity in the Bitcoin derivatives market, indicating heightened institutional interest. Such a surge in trading volume often precedes significant price movements, leading some analysts to anticipate a potential bullish breakout shortly.

Another encouraging sign for Bitcoin’s prospects lies in the call options open interest, which has recently surpassed $10 billion. To put this into context, during the peak of the 2021 bull run, call options open interest reached $9.9 billion. 

This milestone suggests that market participants are increasingly positioning themselves for a potential rise in Bitcoin’s price. The growing number of call options indicates a bullish sentiment among traders, further fueling expectations of a potential price surge.

Bitcoin

As of the time of writing, Bitcoin is trading at $34,500, successfully reclaiming the level it briefly lost during a recent correction on Tuesday. Over the past 24 hours, Bitcoin has maintained gains of 1.4%.

Featured image from Shutterstock, chart from TradingView.com 

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MicroStrategy’s Bitcoin Portfolio Soars Past $5 Billion As BTC Holds Firm At $34,000

In a remarkable turn of events for the business intelligence (BI) company MicroStrategy, the recent bullish momentum of Bitcoin (BTC) has resulted in significant profits and a resurgence for the company. 

MicroStrategy has returned on a profitable trajectory after a prolonged period of market downturn and losses suffered by companies with cryptocurrency holdings.

MicroStrategy’s Bitcoin Holdings Surge 

Just a month ago, MicroStrategy and its subsidiaries made a strategic move by increasing their BTC holdings. According to a filing with the US Securities and Exchange Commission (SEC), the company, co-founded by renowned investor Michael Saylor, added 5,455 BTC to their portfolio, valued at $147 million.

As of the time of writing, MicroStrategy’s Bitcoin holdings stand at a staggering 158,245 BTC, with a total valuation of approximately $4.68 billion. 

Over the past 24 hours, Bitcoin has experienced a remarkable upswing, breaking through a long consolidation phase above $27,000 and reaching a new 2023 high. With a significant surge of 12.2%, BTC peaked at $35,300. This surge has unlocked substantial unrealized profits for MicroStrategy.

According to Lookonchain, MicroStrategy’s Bitcoin holdings have generated an estimated unrealized profit of around $746 million. 

With BTC’s skyrocketing price, MicroStrategy’s strategic accumulation of 28,560 BTC since May 2022, at an average price of $25,707, has proven profitable. 

Bitcoin

MicroStrategy’s success in capitalizing on the recent price surge of Bitcoin highlights the company’s strategic approach and belief in the long-term value of the cryptocurrency. 

By significantly increasing their Bitcoin holdings, MicroStrategy has positioned itself to benefit from BTC’s continued growth and adoption.

BTC Bears Crushed As $300 Million In Shorts Liquidated

The cryptocurrency market witnessed a stunning surge, resulting in a staggering $100 billion addition to its total market capitalization within a single day. This rapid ascent also triggered a wave of liquidations amounting to over $400 million, with shorts accounting for a significant portion of the losses. 

With BTC experiencing a 12% price increase, this led to the liquidation of more than $180 million in short positions out of a total of $222 million in BTC liquidations. 

Ethereum (ETH) traders also saw a significant loss of $60 million, with $44 million coming from those anticipating a price drop, according to data from CoinGlass.

Most of these liquidations, totaling $317 million, occurred within the last 12 hours, with short sellers accounting for a substantial 76% ($241 million) of the total losses. 

Concurrently, trading volumes for the top three cryptocurrencies on the derivatives market witnessed significant growth. 

Bitcoin’s volume experienced a remarkable 221% surge, while Ethereum and XRP saw a 108% increase in trading activity. As a result, approximately 95,000 traders faced liquidation during this period of intense market volatility.

Scott Melker, an investor and host of a cryptocurrency podcast, commented on the situation, stating:

Bitcoin bears have been left reeling as the market witnessed an extraordinary rally, resulting in massive liquidations of short positions. This surge has caught many traders off guard, leading to substantial losses in a short period.

Bitcoin

Featured image from Shutterstock, chart from TradingView.com