Bitcoin Nears $40,000 As Anticipation Builds for SEC's Potential ETF Approval
Summary:
Bitcoin (BTC) surged past the $38,000 resistance mark last week, nearing $40,000, signaling an upward trajectory. The anticipation of the U.S. Securities and Exchange Commission approving a spot Bitcoin exchange-traded fund by early January is driving this rally. Bitcoin's price could soar following the approval, but traders are also warned of a potential sell-off after an initial surge. The price analysis also included insights on cryptocurrencies, including Kaspa, THORChain, Mantle, and Render.
Over the previous week, Bitcoin (BTC) managed to surge past the crucial resistance point of $38,000, inching closer to the coveted $40,000 mark. This indicates that Bitcoin’s direction is on the upswing. The bulls are going to try to maintain this momentum and round off the year on a strong note, while the bears will do their best to bring down the price. Bitcoin's main incentive is the anticipation that the U.S. Securities and Exchange Commission (SEC) will authorize a spot Bitcoin exchange-traded fund by early January. Cory Klippsten, CEO of Swan Bitcoin, stated in a Bloomberg interview that the approval window for the spot Bitcoin ETF could be as early as January 8th, 9th or 10th.
Several market experts predict that Bitcoin's price will surge following the approval of one or more spot Bitcoin ETFs. That being said, traders should be on guard for a potential sell-off following the initial surge. This trend is typically observed in legacy markets, leading to the popular phrase: "Buy the rumor, sell the news."
Could Bitcoin's climb toward $40,000 stimulate altcoin buying? Let's examine the charts of the top 5 cryptocurrencies that could pique investor interest.
Bitcoin price analysis illustrates that Bitcoin pushed past the overhead resistance of $37,980 on Dec. 1, completing the bullish ascending triangle pattern. This sets a target of $41,160.
One may expect a drop to $38,000 after breaking away from a pattern. If bulls can establish this as a support point, the chance of a rally surpassing $41,160 is likely. The BTC/USDT pair could then soar to $48,000 due to lack of any significant resistance.
Bulls have the upper hand as per the trend, but the bears are likely to counter hard at $40,000. A fall below $38,000 could result in short-term traders triggering stops. The pair may then try the uptrend line. Bears need to bring the pair below this level to secure a near-term advantage.
The 4-hour chart shows an RSI increase, indicating that a near-term correction is possible. The first level of support could be at the 20-exponential moving average, and then the 50-simple moving average, situated close to the breakout level of $38,000. A price rebound at the 20-EMA would suggest traders buying on minor dips, signalling potential of a hike to $41,160. On the other hand, a fall below $38,000 could result in a sink to the uptrend line.
Analysis of Kaspa, THORChain, Mantle, and Render prices also promises compelling possibilities and noteworthy indications for interested investors.
The above information should solely be considered informative, with no given investment advice. All investments and trading ventures carry inherent risk, and individual research must be performed prior to a commitment.
Published At
12/3/2023 5:34:57 PM
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