As Bitcoin Nears $38,000, This Analyst Says ‘The Good Times Are Here’
November 16 2023 - 12:53AM
NEWSBTC
Bitcoin proponents have reason to be merry as the alpha coin has
gracefully ascended to a promising valuation of nearly $38,000 as
of late Wednesday, reclaiming its throne with the highest value
seen in the last 12 months. Bitcoin bounced back strongly from its
battering the day before, reaching within striking distance of a
new 18-month high just shy of the vaunted price target. A drop in
federal interest rates, the expectation that Sam Bankman-Fried’s
apology for his actions at FTX is a fresh start for the distressed
sector, and the SEC’s approval of a bitcoin exchange-traded fund
(ETF) are some of the things that caused prices to rise. Related
Reading: Celestia Strikes: How This Lesser-Known Coin Went Berserk
With 126% Price Explosion ETFs are a type of investment product
that tracks an index or a commodity. Bitcoin ETFs would allow
investors to profit from bitcoin’s rising value without actually
owning any bitcoin. ByteTree pointed out that Bitcoin was doing
much better than standard assets like gold and U.S. stock indexes,
which have also been going up. Reports say that a decision could
bring in an extra $600 billion in demand. An approval for an ETF,
according to CryptoQuant experts, will cause Bitcoin’s market
capitalization to swell by $1 trillion. Bitcoin Up 117% This
Year As this developed, Bitcoin has had a significant increase of
over 117% in value over the course of this year. The anticipation
of the halving event in 2024 has also contributed to the increase
in market optimism. The price of Bitcoin (BTC) is going up as
people try to make up for all the ground they lost in the recent
crash, which erased up to $90 million in open interest. At $34,572,
the 25-day Exponential Moving Average (EMA) comes into view. BTC is
trying to get back above the important support level at $36,788.
BTCUSD trading at $37,379 on the daily chart: TradingView.com
Despite an array of economic challenges, BTC continues to surge
upward, registering a 126% year-to-date gain and options market
data point to speculators angling toward the $40,000 level. With
the recent price increase, the Crypto Fear and Greed index has
moved squarely into the “Greed” category, indicating that market
mood has improved. Source: Alternative.me In an environment
characterized by an optimistic and positive outlook, Bitcoin’s
momentum could be amplified and gun for the psychological turning
point of $40,000. This would be a big 10% rise from where it is
now. It’s getting stronger because the Relative Strength Index
(RSI) is tilting northward, which shows a surge in momentum.
Related Reading: If Your Bitcoin Wallet Is A Product Of The 2016
Technology, You Could Be In Trouble – Here’s Why Is The Bear Market
Behind Us? According to Zach Pandl, managing chief of research at
crypto fund provider Grayscale Investments LLC: “The recovery in
crypto valuations can continue if real interest rates peak and we
continue to see progress toward spot ETF approvals in the US
market.” “Bitcoin is now going mainstream, and the bear is behind
us,” Charlie Morris, founder of investment advisory company
ByteTree, said in a Wednesday market report. “The good times are
here,” he said. Source: CoinShares Meanwhile, institutional
investors have already begun deploying capital to Bitcoin and
cryptocurrencies, while retail investors may be waiting for
additional liquidity from approved ETFs. Over the past year,
institutional investors have poured over $1 billion into
cryptocurrency, CoinShares data show (chart above). (This site’s
content should not be construed as investment advice. Investing
involves risk. When you invest, your capital is subject to risk).
Featured image from cottonbro studio/Pexels
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