Bitcoin Soars More than 10% as Crypto Market Showcases Robust Growth Trends
Summary:
Bitcoin's price has surged more than 10% this week, with investors pouring over $1.44 billion into Bitcoin investment products amid anticipation of the approval of a spot Bitcoin ETF. Other cryptocurrencies like Ether, Ripple, Binance Coin, Solana and more continue to show promising upward trends. As investors anticipate a continued rise, debate surrounds the initiation of profit-taking as cryptocurrencies reach critical resistance points.
Bitcoin has been on a robust growth trajectory this week, with a surge of more than 10%. This underlines the urgency among traders to acquire Bitcoin, as they expect the price to continue rising. According to CoinShares, investors have channeled over $1.44 billion into Bitcoin investment instruments in the past 10 weeks. It is anticipated that green-lighting a Bitcoin exchange-traded spot fund could usher in significant investments. Robby Yung, CEO of Animoca Brands, suggested during the Next Block Expo in Berlin that Bitcoin ETFs could potentially generate revenue worth "10 to $12 billion."
While long-term investors have been amassing Bitcoin, those holding the coins for less than 155 days have capitalized on the profits in December. James Van Straten, a data analyst at CryptoSlate, revealed that short-term holders sent nearly $5 billion in Bitcoin to exchanges in the earliest days of December.
As Bitcoin continues its upward trend and approaches $48,000, it remains to be seen if profit-taking will occur. This necessitates an examination of the charts from the top 10 cryptocurrencies.
Bitcoin's robust growth momentum accelerated when prices surpassed $40,000. The minor hurdle at $41,160 was effortlessly overcome. This strong performance has thrust the relative strength index into overbought territory, which typically precedes a consolidation or correction phase. However, buyers continue to push the market, aiming for a target of $48,000, which will likely serve as a strong resistance point.
Price analysis of Ether shows that buyers successfully reversed attempts to pull prices below $2,200. The RSI is in the overbought zone and the moving averages are ascending, signaling that the bulls currently hold the reins. A pull down to $2,200 would complete an ascending triangle, possibly initiating a rally to $2,500, and then $2,950.
The price analysis of Binance Coin (BNB) shows that the price could potentially increase to $239.20. The 20-day EMA is flat and the RSI is just below the midpoint, suggesting an equilibrium.
The price of Ripple (XRP) could rise to $0.67 as XRP has seen buyers stepping in at lower price points. Similarly, based on the analysis of Solana (SOL), the price might increase above $68.20 considering that the bears have tried but failed to pull the price below $59. If that happens, it may drive the price towards $100.
Cardano (ADA) price may rise to $0.46 and Dogecoin (DOGE) is expected to increase from $0.09 to $0.11. According to the analysis of Avalanche (AVAX), the price has risen above the resistance level of $24.69 which clears a path for a potential rally to $28.50 and then to $31.
Chainlink (LINK) has been lingering around the resistance level of $16.60, suggesting that buyers are expecting an upside breakthrough. Meanwhile, Toncoin (TON) has been hovering around the 20-day EMA of $2.39, which indicates a lack of demand at elevated levels.
This report does not serve as an investment guide or advisory. All investment and trading moves pose risks, and readers are advised to undertake their own research when deciding on their course of action.
Published At
12/6/2023 9:32:45 PM
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