Bitcoin’s recent symbolic move pushed its price above $40,000 for the first time since May 2022, marking a significant milestone in its continued rise. Moreover, Ethereum price also joined the upward trend, surpassing $2,200 amid a broad market rally. Other altcoins in the top 10 saw notable gains as their movements slowed.
What is causing the recent price rise?
The recent Bitcoin rally follows dovish comments from the U.S. central bank and growing hopes for approval of a Bitcoin spot ETF. Second, traders appear to be optimistic about the upcoming rally. According to a recent report, holders withdrew 37,000 BTC during the second week of November, indicating that they are in direct control of the tokens.
In addition to this, markets are expecting a rate cut next year after Federal Reserve Chairman Jerome Powell said interest rates were in restrictive territory, which had an impact on various markets. Additionally, traders have been engaging in topside options play and placing large long trades, with prices expected to rise to $45,000 by the end of the year. This indicates growing confidence and expectations, which could contribute to further upward movement.
What’s next for BTC price?
The week ahead brings important economic data, including US ISM Services, PMI, and December non-farm payrolls. The trend is expected to continue upward in the long term as the price surges and continues to trade beyond profits.
With the recent gains, BTC price has surged ahead of the upper resistance of the symmetrical triangle. A weekly close above $42,472.89 could prove a breakout above the pattern that could trigger a new move towards the next resistance level above $46,000. Strong non-farm payrolls figures could impact rate cut bets in 2024 and potentially influence BTC price appreciation in the future, creating some downside potential.