Posted on

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

Posted on

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

Posted on

Bitcoin Crash Ahead: Expert Predicts Testing $20K Before Rebound

Bitcoin, the largest cryptocurrency in the market, experienced a price recovery on Friday; however, industry experts anticipate a further test of sub-$30,000 levels in the near term. 

The prolonged downtrend observed over the past fourteen days, coupled with mounting selling pressure, has raised concerns about the sustainability of the recent rebound.

BTC’s Local Bottom Predicted

Chris Burniske, co-founder of a New York-based venture crypto firm, highlights several factors contributing to the anticipated downward movement of Bitcoin. 

Burniske suggests that the consolidation phase may extend longer than expected due to many variables, including crypto-market dynamics, macroeconomic conditions, adoption trends, and new product developments. 

Burniske offers his outlook on Bitcoin, stating that a local bottom could be reached in the $30,000 to $36,000 range. However, he wouldn’t be surprised if the cryptocurrency tests the mid-to-high $20,000 before recovery occurs, leading to a renewed push toward previous all-time highs. 

Burniske cautions that the path to such a recovery will likely be volatile, marked by potential fakeouts, and may span several months.

The market expert advises investors to exercise patience during this period of uncertainty. Burniske suggests that other cryptocurrencies may experience more significant percentage declines if his predictions hold Bitcoin. Burniske further stated:

Before you get mad with, “We’re just getting this cycle started, Chris!!!” Mostly agree, ~called the cycle bottom in Nov 2022 and continue to believe the long-term trend remains robust. Have also seen a lot of crypto volatility over the last decade+…. recently, I’ve specifically been discussing a local top and local low, not a cycle-wide top and low. 

Buy Signal For Bitcoin

Crypto analyst Ali Martinez has provided insights into potential price movements for Bitcoin in its latest analysis conducted on the social media platform X (formerly Twitter). 

Martinez’s assessment indicates that the TD Sequential indicator recently flashed a buy signal on the daily chart, coinciding with Bitcoin’s current position above the 100-day Simple Moving Average (SMA) at approximately the $40,000 level. 

Bitcoin

According to Martinez, if Bitcoin surpasses the $40,550 resistance level, it may trigger an upswing with a target price of $43,000. This bullish scenario implies a potential price rally for Bitcoin soon. 

However, the analyst also highlights the importance of closely monitoring the 100SMA support level, as a breach of this level could have significant implications for the cryptocurrency’s price trajectory.

Martinez cautions that if the 100SMA support level is breached, it might result in Bitcoin experiencing a downward move toward the $33,300 level. This potential downside scenario indicates a critical support level that, if broken, could lead to increased selling pressure and a bearish sentiment in the market.

Bitcoin

At the time of writing, BTC’s price has recovered 3.8% over the past 24 hours, resulting in a current trading price of $41,400.

Featured image from Shutterstock, chart from TradingView.com

Posted on

Bitcoin Price At Risk? Grayscale’s $335M Coinbase Transfer Stirs $30,000 Plunge Potential

The Bitcoin price has experienced a notable shift as selling pressure mounts, with BTC bears gaining the upper hand. Asset manager Grayscale, the owner and manager of the Grayscale Bitcoin Trust (GBTC), is a significant contributor to this trend. 

Since the trading of spot Bitcoin exchange-traded funds (ETFs) began on January 12, Grayscale has been on a selling spree, as evidenced by substantial transfers of BTC to the United States-based crypto exchange Coinbase.

Bitcoin Price Under Pressure As Grayscale Selling Spree Continues

According to Akrham Intelligence data, in addition to the previously reported 69,994 BTC ($2.9 billion) transfers, Grayscale sent an additional 8,593,075 BTC (approximately $335.19 million) to the exchange on Tuesday, suggesting the possibility of further selling activities.

Bitcoin price

These developments have affected the Bitcoin price, which has experienced a significant downtrend, declining by 20% over the past week and a half. 

On Tuesday, the largest cryptocurrency dropped as low as $38,500, placing considerable pressure on a crucial support level. Despite the bearish pressure, the $38,500 support level has demonstrated resilience so far, with the cryptocurrency rebounding to $39,300 at the time of writing. 

Nevertheless, the duration of Grayscale’s selling spree remains uncertain, and if market sentiment continues to turn negative, Bitcoin could potentially revisit the $30,000 mark. This figure is just above the key $29,000 level that marked the beginning of the bull run that took Bitcoin to its 22-month high of $49,000 on January 11th.

Bears On The Rise

If the $38,500 threshold succumbs to Grayscale’s selling pressure and profit-taking, market observers should closely monitor the $37,750 level as the next resistance. 

Failure to hold above this level would open the door to a potential decline toward the major resistance at $35,600, which could further prevent a dip to the next support level at $33,000.

However, if these support levels are breached and the Bitcoin price continues its downtrend, the next significant key levels to watch for bullish momentum would be $29,000 to $30,000. A breakdown below these levels could signal an end to the current bull market structure and grant the bears the upper hand in the mid-term, at least until the anticipated halving event in April. 

Historically, halving events have acted as major catalysts for the Bitcoin price, and their influence has been demonstrated.

As the Bitcoin market faces intensified selling pressure and Grayscale’s ongoing selling spree, market participants remain cautious about the potential for a significant price plunge. The coming days and weeks will be critical in determining whether Bitcoin can regain its bullish momentum or if it will succumb to further downward pressure.

Bitcoin price

Featured image from Shutterstock, chart from TradingView.com

Posted on

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 

Posted on

Bloodbath For Bitcoin: Grayscale’s $529 Million BTC Move To Coinbase Pushes Price Below $41,000

Bitcoin (BTC), the largest cryptocurrency in the market, has experienced a sharp drop below the $41,000 mark as exchange-traded funds (ETFs) for Bitcoin went live on January 12. 

The subsequent profit-taking, selling pressure, and outflows from Grayscale’s Bitcoin Trust ETF (GBTC) played a significant role in the downward trend.

Grayscale’s Bitcoin Transfers To Coinbase Intensify

On Tuesday, NewsBTC reported that six days ago, Grayscale initiated the first batch of BTC outflows from their holdings to a Coinbase, totaling 4,000 BTC (approximately $183 million) over six days. 

However, the asset manager resumed outflows from the Trust to the exchange on Tuesday, sending an additional 11,700 BTC (equivalent to $491.4 million) to Coinbase. 

Furthermore, on Friday, data from Arkham Intelligence revealed that 12,865 BTC ($529 million) were transferred from the Grayscale Trust address to Coinbase Prime. 

Bitcoin

In total, the Grayscale Trust address has transferred 54,343 BTC ($2.313 billion) to Coinbase Prime during the opening hours of the US stock market over five consecutive trading days since January 12, which has undoubtedly contributed to the downtrend in Bitcoin’s price.

Selling Frenzy Among BTC Miners

In addition to Grayscale’s selling spree, there has been increased selling activity by Bitcoin miners ahead of the upcoming Bitcoin halving. 

Crypto analyst Ali Martinez highlights that on-chain data from CryptoQuant indicates a substantial increase in selling activity by BTC miners. In the past 24 hours, miners offloaded nearly 10,600 BTC, with a value of approximately $455.8 million.

The persistent selling pressure has caused BTC to trade at $40,900, reflecting a slight 0.2% decrease over the past 24 hours. 

Bitcoin

The downtrend has been evident across various time frames, with declines of 5%, 6%, and 7% over the seven, fourteen, and thirty-day periods, respectively. However, despite these recent setbacks, Bitcoin remains remarkably positive year-to-date, with an impressive 98% gain.

Overall, the combined impact of Grayscale’s Bitcoin Trust ETF outflows and increased selling activity by miners has intensified the downward pressure on Bitcoin’s price, breaching the critical support level of $41,000. 

The focus now turns to how Bitcoin bulls will defend the crucial $40,000 support level, which stands as the last line of defense before a potential dip toward the $37,700 mark.

Bitcoin

Should this support level fail to hold, the Bitcoin market could witness further price declines, potentially pushing the price down to the $35,800 mark. However, with the Bitcoin halving scheduled for April, bullish investors are hopeful that this event will catalyze a significant bull run.

Featured image from Shutterstock, chart from TradingView.com

Posted on

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 

Posted on

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

Posted on

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

Posted on

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 

Posted on

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

Posted on

Mt. Gox Repayment Rumors Cause Bitcoin Price To Drop To $42,000, Market In Turmoil

Mt. Gox, the infamous Bitcoin exchange that suffered a major hack over a decade ago, has allegedly finally begun the process of repaying its customers for the 850,000 lost Bitcoin. This news has sent shockwaves through the market, causing a momentary disruption in the Bitcoin price uptrend.

As a result of these developments, the current price of Bitcoin stands at $42,625, with a 24-hour trading volume of $22,655,498,534.64. 

However, the market has witnessed a -2.40% decline in the past 24 hours, reflecting the uncertainty caused by the Mt. Gox repayment proceedings.

Bitcoin Price Plunges Amidst Mounting Speculation

Reports from participants in the mtgoxinsolvency subreddit group indicate that some individuals have already received payouts in yen via PayPal. 

However, those who opted for cash deposits into their bank accounts have not reported any inflows as of yet. Several users have shared notifications they received, alerting them to a system error that resulted in double payments. 

These users are now allegedly being requested to return the excess funds to the Rehabilitation Trustee promptly.

Moreover, the Rehabilitation Trustee has reached out to affected individuals to refund the mistakenly transferred amount, which was the second transfer, as the first transfer was the official repayment. 

Bitcoin price

Users have been instructed to use PayPal’s “Refund” feature to return the funds to the Rehabilitation Trustee’s account. Alternatively, they can transfer an equivalent amount of money to the Rehabilitation Trustee’s PayPal account if the “Refund” feature is unavailable.

While some users have confirmed receiving their repayments, there is uncertainty surrounding the timing of Bitcoin reimbursements or if they are taking effect.

No Bitcoin Outflows Detected From Mt. Gox?

In a recent statement by CryptoQuant co-founder and CEO, Ki Young Ju, it has been confirmed that “no Bitcoin outflows have been recorded from the Mt. Gox Trustee wallet at this time.” 

Furthermore, the trustee responsible for managing the rehabilitation proceedings of Mt. Gox, the now-defunct Bitcoin exchange, has yet to provide any official statements explaining the absence of outflows from the wallet. 

Consequently, the cryptocurrency community finds itself on edge, eagerly awaiting updates regarding the timing and method of Bitcoin reimbursements.

Once again, the cryptocurrency community has been hit by another bout of misinformation surrounding the long-awaited Mt. Gox exchange repayment to its customers. 

The spread of this news has had a notable impact on market sentiment and has stirred volatility in the Bitcoin price. The future timeline and potential effects of the exchange’s repayment, slated for 2024, remain uncertain.

Bitcoin price

Featured image from Shutterstock, chart from TradingView.com  

Posted on

Countdown To Bitcoin ETF 2024 Decision: Traders Employ Hedging Tactics, Bloomberg Unveils

As the long-awaited deadline for a positive or negative decision on spot Bitcoin ETF applications approaches, Bloomberg reports that the BTC options market is seeing increased hedging activity as traders prepare for a crucial decision on January 10th.

The report indicates a surge in open interest for put options expiring on Jan. 12, suggesting that market participants are taking steps to mitigate potential losses in the event of a negative verdict by the US Securities and Exchange Commission (SEC) regarding these index funds holding the cryptocurrency. 

Market Readies For Bitcoin ETF Verdict

The Bloomberg report highlights that the open interest for put options, which allow holders to sell Bitcoin, has seen a significant increase for contracts expiring on January 12. 

This surge in open interest has resulted in a higher put-to-call ratio for these specific options compared to contracts with expiration dates further out from the January 10 deadline. 

As seen in the chart below, the most prominent strike prices for the put contracts are $44,000, $42,000, and $40,000, respectively, indicating that put holders could exercise their options to minimize losses in case of a negative market reaction to the SEC decision.

Bitcoin ETF

The put-to-call ratio, considered a measure of overall market sentiment, stands at 0.67 for the January 12 options contracts, indicating a more cautious approach among traders. 

Ryan Kim, head of derivatives at FalconX, suggests that leveraged/speculative traders are employing Bitcoin put options to protect their leveraged longs, anticipating significant price movements in either direction. 

The higher put-call ratio for January 12 options further reflects the market’s desire for protection against a potential negative decision.

The surge in open interest for put options expiring on January 12 indicates a growing need for protection in case of an unfavorable ruling. While Bitcoin’s rally has softened the impact of its 2022 decline, market expectations for ETF approval may already be priced in, posing potential risks for the market. 

BTC’s Price Resistance And Potential Dip 

Bitcoin has experienced a remarkable rally this year, with expectations for ETF approval driving its price up by more than 60% since mid-October. 

However, the Bloomberg report suggests that the surge in demand for the anticipated ETFs may already be factored into the token’s price, potentially exposing the market to a “sell the news” scenario in the second week of January. 

Furthermore, QCP Capital, a Singapore-based crypto asset trading firm, predicts topside resistance for Bitcoin in the range of $45,000 to $48,500 and a possible retracement to $36,000 levels before the uptrend resumes.

Bitcoin ETF

Bitcoin is currently trading at $43,400, experiencing a 1% decline over the past 24 hours. Over the past 14 days, the cryptocurrency has shown a sideways price movement with a slight decrease of 0.4%. 

Given Bitcoin’s well-known volatility, it remains uncertain how the market will react as the looming decision and potential catalysts draw near, and how these factors will impact its price dynamics.

However, the upcoming decision is not the sole catalyst that can potentially drive Bitcoin’s price in 2024. The cryptocurrency is also anticipated to experience a significant catalyst in April 2024, known as the halving event. 

This event has historically resulted in an upward surge in Bitcoin’s price, and it is predicted to propel the cryptocurrency beyond its previous all-time high (ATH) of $69,000 throughout the upcoming year.

Featured image from Shutterstock, chart from TradingView.com 

Posted on

Bitcoin Price Surges On Positive News: FASB’s Fair Value Recognition Reignites $42,000 Support Recovery

The Bitcoin price experienced a notable downturn as selling pressure intensified, resulting in a decline of over 4% from its annual peak of $44,500. This downturn was further exacerbated by the loss of the crucial $42,000 support level. 

However, the largest cryptocurrency in the market received a substantial uplift from the US Financial Accounting Standards Board (FASB), which has spurred a rapid 1.8% surge in BTC’s value within the past two hours. As a result, Bitcoin has successfully recovered the $42,000 support level.

FASB’s Fair Value Recognition Brings Clarity To BTC?

In a significant development for the cryptocurrency industry, the FASB has announced new accounting rules that require companies, including prominent entities like MicroStrategy, Tesla, and Block, to measure their cryptocurrency holdings at fair value. 

These rules, set to go into effect in 2025, allow businesses to capture the real-time highs and lows of their Bitcoin and Ethereum (ETH) assets, providing a more accurate representation of their holdings.

Under the previous accounting practices, companies were only allowed to record the lows, resulting in a one-sided accounting treatment that often led to reduced valuations and diminished earnings for businesses holding cryptocurrencies. The highly volatile nature of crypto values further exacerbated the issue.

The FASB’s new rules address these concerns by mandating the recording of cryptocurrencies at fair value, a measurement technique aimed at reflecting the most up-to-date value of these assets. 

Changes in fair value will now be recorded in net income, allowing companies to account for fluctuations in the value of their crypto holdings more comprehensively.

The positive news for BTC lies in the fact that the new FASB rules provide greater transparency and accuracy in assessing the true value of cryptocurrency assets. By capturing fluctuations in fair value, companies will have a more realistic representation of their holdings, enabling better decision-making and financial reporting.

Bitcoin, being the most widely recognized and valuable cryptocurrency, stands to benefit significantly from these changes. The recognition of its fair value allows companies to showcase the true worth of their BTC holdings, potentially boosting investor confidence and attracting further institutional interest.

Turbulent Times Ahead For Bitcoin Price

Following these recent developments, the Bitcoin price has successfully rebounded to previously lost levels, demonstrating heightened volatility after a brief consolidation phase just below $42,000.

However, according to CoinGlass’ liquidation heatmap, Bitcoin’s price may be facing further volatility that could lead to a significant amount of liquidation of both long and short positions. 

Bitcoin price

The liquidation heatmap from CoinGlass highlights substantial indications of liquidation leverage exceeding $200 million both above and below the current Bitcoin price. 

Of particular concern is the thick liquidation leverage below $41,000, as seen in the chart above, which, combined with the prevailing trend, could become a probable target for the Bitcoin price in the coming days.

Conversely, following BTC’s correction, additional liquidation leverage has emerged in CoinGlass’s heatmap, particularly in the $42,000 and $43,000 range of short positions. This added selling pressure has contributed to the retracement of the Bitcoin price.

This potential scenario suggests a potential price swing up and down before a stable continuation of either the downward or upward momentum. The outcome remains uncertain as to which side will give way first and what prevailing trend will shape the latter part of the year.

Bitcoin price

Featured image from Shutterstock, chart from TradingView.com

Posted on

Bitcoin $42,000 Support Under Pressure As Short Position Inflows Soar

Bitcoin (BTC) recently experienced a sharp decline, tumbling towards $40,000 amid a broader sell-off across the cryptocurrency market. While the most significant token managed to recover some losses, currently trading 4% lower at $42,000, concerns persist regarding the potential for further downside price action before a potential recovery.

Investors Show Caution With Short-BTC Position Inflows

According to a recent CoinShares report, digital asset investment products witnessed their 11th consecutive week of inflows, totaling $43 million. Notably, there was a significant increase in short position inflows due to recent price appreciation and perceived downside risks. 

Europe led with $43 million in inflows, followed by the US with $14 million (with half in short positions). On the other hand, Hong Kong and Brazil experienced outflows of $8 million and $4.6 million, respectively. 

Bitcoin remained the primary focus for investors, attracting $20 million in inflows, bringing the year-to-date inflows to $1.7 billion. Short-Bitcoin positions saw $8.6 million in inflows, suggesting some investors view the current price rises as unsustainable. 

Ethereum (ETH) also saw increased interest, with its sixth week of inflows totaling $10 million, marking a turnaround from previous outflows.

Selling Pressure Mounts As Miners Decrease Bitcoin Holdings

According to Satoshi Club, there are indications that miners are selling their Bitcoin holdings following the recent price drop. Data shows a significant decrease in miners’ BTC holdings, with increasing flows to exchanges, suggesting selling pressure in the market. 

Satoshi Club’s analysis highlights that this trend could be attributed to the anticipated halving in 2024, which will reduce miners’ rewards by half. 

Bitcoin

Additionally, Bitcoin’s net unrealized profit/loss, which indicates the investor profit ratio, has surpassed 0.5 for the first time since December 2021. This suggests that a significant portion of Bitcoin investments are currently profitable, potentially leading to increased selling pressure at current price highs.

BTC’s Bullish Structure Intact, But Deep Correction Threatens Run

In the 1-day chart for Bitcoin, the current trading price is closely aligned with a support level. Despite briefly dipping below this level, Bitcoin has managed to recover and trade above it, mitigating further declines.

However, in the event of continued selling pressure and an inability to maintain its current price level, Bitcoin’s next critical level of support would be $39,990. 

Bitcoin

It is worth noting that during the previous hype surrounding Bitcoin’s milestone, many traders entered long positions below the current levels. This influx of long positions could trigger a liquidation hunt before a recovery ensues.

If such a scenario unfolds, the hunt for liquidations could drive Bitcoin’s price further down, potentially testing support levels at $38,700 and $37,800.

On a positive note, Bitcoin’s current bullish structure would remain intact unless a significant correction occurs, pushing the price below the $29,900 level. This level began Bitcoin’s current bull run in late October.

The future outcome hinges on whether Bitcoin can successfully hold its nearest support levels and facilitate a recovery that shifts the focus from hunting long positions to hunting short sellers, eventually regaining previously conquered territories.

Featured image from Shutterstock, chart from TradingView.com

Posted on

SEC’s “Crypto Asset Securities” Alert Boosts Spot Bitcoin ETF Prospects – Here’s Why

As anticipation builds for the long-awaited approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC), an encouraging sign has emerged, further increasing the likelihood of approval. 

The SEC issued an investor alert regarding “crypto asset securities,” prompting speculation that the spot Bitcoin ETF may be closer than ever. 

Spot Bitcoin ETF Approval On The Horizon?

The recent investor alert issued by the SEC has garnered significant attention in the cryptocurrency community. While the alert does not explicitly mention the spot Bitcoin ETF, many market participants believe it is a positive indicator for its potential approval.

The parallel between the investor alert and the approval of Bitcoin Futures adds to the growing optimism surrounding the spot Bitcoin ETF. Before approving Bitcoin Futures, the SEC issued similar alerts and warnings, indicating their concern and engagement with the underlying asset class. 

Consequently, market observers, including Bloomberg’s ETF expert Erich Balchunas, are interpreting the investor alert on “crypto asset securities” as a potential precursor to the approval of a spot Bitcoin ETF. Balchunas stated: 

Oh snap, SEC tweeting out educational materials, warnings on crypto investing, which is something they also did ahead of $BITO

It is important to note that the SEC will evaluate various factors, including investor protection, market integrity, and compliance with existing regulations, before making a final determination on the spot Bitcoin ETF. 

However, given the increased attention and progress in cryptocurrency, the issuance of the investor alert signifies a step in the right direction.

Potential BTC Surge To $48,000 

Renowned crypto analyst, Crypto Con, has made interesting observations regarding BTC’s current market dynamics that shed light on the potential next steps for the largest cryptocurrency on the market.

According to Crypto Con, money has been pouring into BTC at a rate not witnessed since the last cycle’s peak, with historical data indicating similar patterns on only five prior occasions. 

This influx of funds has heightened the market’s sentiment and created anticipation for potential further price gains. Crypto Con highlights the significance of Bitcoin’s Money Flow Index (MFI), a technical indicator used to measure the strength and volume of funds flowing into or out of an asset, which reached a value of 91.57, historically indicating the presence of additional bullish momentum.

Bitcoin ETF

Furthermore, the analyst identifies the .618 cycle retrace of weekly candle bodies as a point of interest for potential target ranges. This level aligns with other significant price regions, further bolstering its importance. 

Crypto Con suggests that Bitcoin’s price could likely reach the range of $47,000-$48,000 based on these target ranges. However, the analyst also notes that significant price increases are often followed by retracements at this stage in the market cycle.

Crypto Con highlights the potential for a retracement after the completion of the current price rise. The analyst identifies the $31,000-$32,000 range as an area of interest for a potential retracement based on long-term data. 

Bitcoin ETF

As of the time of writing, Bitcoin (BTC) is being traded at $43,800, showcasing a noteworthy recovery within the past 24 hours following a retracement below $42,900 on Thursday. 

While this price rebound is encouraging, it remains uncertain whether the prevailing market dynamics possess sufficient strength to propel Bitcoin beyond its current yearly high of $44,500. There is a possibility that Bitcoin may experience another failed attempt to surpass this level, which could subsequently result in a deeper retracement before witnessing another upward movement.

Featured image from Shutterstock, chart from TradingView.com 

Posted on

Sam Altman-Backed Crypto Startup Looks To Secure $100 Million For Bitcoin Private Credit Fund

Meanwhile Advisors, a crypto startup backed by the American entrepreneur Sam Altman, has announced plans to raise $100 million for a Bitcoin (BTC) private credit fund. 

The fund, known as Meanwhile Private Credit Fund aims to provide institutional investors with access to BTC while targeting an additional 5% yield denominated in the cryptocurrency.

Bitcoin Rally Sparks Launch Of Meanwhile Advisors Fund

According to a report by The Block, Meanwhile Advisors has launched the fund as Bitcoin continues its recent rally, with prices currently falling from the $44,000 level down to the $43,200 mark. 

Zac Townsend, the co-founder and CEO of Meanwhile Group, stated that the belief is that Bitcoin will appreciate significantly in the future, and the fund offers investors a unique opportunity to increase their exposure to digital assets.

The Meanwhile BTC Private Credit Fund adopts a single-close, closed-end structure. Participating limited partners (LPs) will contribute US dollars to the fund, which will be immediately converted to Bitcoin following the single close. 

Meanwhile will lend this BTC to borrowers to generate the targeted 5% return in Bitcoin. This structure allows LPs to accumulate more Bitcoin if its price appreciates during the fund’s lifecycle without requiring additional principal investment.

Townsend mentioned that the minimum investment amount per LP is $250,000, with no maximum limit. The fund’s investment period spans three years, followed by a four-year harvest period, resulting in a total term of seven years. 

However, capital is returned to investors during harvest, meaning a significant portion of the invested capital may be returned well before the seven-year mark.

Innovative Fee Approach? 

Per the report, the Meanwhile BTC Private Credit Fund charges a 2% management fee and a 20% carried interest fee, both in Bitcoin. The carried interest fee only applies when the LP’s Bitcoin holdings are increased. 

This fee structure ensures that if Bitcoin experiences substantial price appreciation, Meanwhile does not benefit from the price appreciation itself but rather from generating more Bitcoin for the LPs.

Addressing concerns about risk management, Townsend highlighted that the closed structure of the fund eliminates the risk of a “bank run” scenario that can lead to insolvency. Moreover, the fund focuses on making conservative loans to “creditworthy institutional borrowers”, mitigating risks associated with lending to retail investors at higher rates.

The Block also reported that Anchorage Digital serves as the fund’s custodian. Meanwhile Group’s insurance unit has previously launched a Bitcoin-denominated life insurance policy, and Townsend mentioned plans to introduce an accidental death coverage policy in Bitcoin as well.

Bitcoin

When writing, the leading cryptocurrency in the market is trading at $43,200, marking a decrease of nearly 2% within the last 24 hours. This decline follows an unsuccessful attempt to solidify its position above the significant $44,000 milestone. 

Nevertheless, Bitcoin has managed to maintain a 14% increase over the past seven days and is currently holding strong at the support level of $43,000, as it sets its sights on achieving a new annual peak.

Featured image from iStock, chart from TradingView.com

Posted on

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 

Posted on

Warning Signals Flash As Bitcoin Surges: Expert Spotlights Potential $25,000 Liquidity Sweep

Bitcoin (BTC), the world’s leading cryptocurrency, has recently witnessed a surge in price, reaching a new yearly high of $42,100 on Monday. However, this significant price increase has raised concerns among market participants about the possibility of a potential correction and a subsequent liquidation sweep, which could drive the price down to as low as $25,000.

Second Capitulation And Liquidity Sweep For Bitcoin?

Justin Bennett, a prominent technical analysis expert, acknowledges the remarkable performance of Bitcoin, stating, “It’s been a hell of a run from BTC, and it may very well continue without a significant correction in the short term.” 

However, Bennett highlights that the previous two bear markets concluded with a second capitulation, suggesting the possibility of a similar scenario occurring this time. Bennet cautions against ruling out a liquidity sweep that could drive the price down to $25,000.

To provide further context, liquidity sweep refers to a sudden and drastic move in price that aims to clear out excess leverage and trigger liquidations of overleveraged positions. 

Such a move could lead to a cascading effect, causing the price to drop further as more positions get forcefully closed. The occurrence of a liquidity sweep at the $25,000 level would not only test the resilience of Bitcoin but also serve as a crucial moment for market sentiment.

Bitcoin

As seen in the 2-week chart above shared by Bennet, despite the potential correction in BTC, this could be the last difficulty that Bitcoin bulls experience before the continuation of the bull run; this will be further fueled by the potential approval of Bitcoin spot exchange-traded funds (ETFs) applications by the US Securities and Exchange Commission (SEC), which is expected to push prices even higher. 

A boost from the halving of Bitcoin will further add to the bullish momentum and sentiment in the market, which could push the price of BTC to new all-time highs (ATH).

Additionally, historical trends indicate a promising outlook for Bitcoin. Analyst Ali Martinez points out that in the past, strong BTC performance during October and November has been followed by a bullish December. According to Martinez, market participants can anticipate a bullish December ahead if this pattern holds. 

El Salvador’s BTC Investments Prove Profitable

El Salvador’s President Nayib Bukele recently announced that the nation’s investments in Bitcoin have yielded significant profits, refuting previous claims of losses made by critics. 

President Bukele revealed that if El Salvador were to sell its Bitcoin holdings at the current market price, the country would not only fully recover its initial investment but also make a profit of $3,620,277.13.

Bitcoin

Addressing the numerous articles and hit pieces that had ridiculed El Salvador’s Bitcoin investment strategy, President Bukele emphasized that these assessments were based on the cryptocurrency’s market price at the time of evaluation. With Bitcoin’s recent surge in value, the country’s investment has turned profitable.

While acknowledging that the price of Bitcoin will continue to fluctuate, President Bukele reaffirmed that El Salvador remains committed to its long-term strategy and has no intention of selling its Bitcoin holdings. President Bukele stated: 

Of course, we have no intention of selling; that has never been our objective. We are fully aware that the price will continue to fluctuate in the future, this doesn’t affect our long-term strategy.

Bitcoin

At the time of writing, BTC is trading at $41,200, reflecting a notable price increase of 3.8% over the past 24 hours and 12% over the past seven days.

Featured image from Shutterstock, chart from TradingView.com 

Posted on

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