During the weekend, Bitcoin (BTC) It has achieved a remarkable milestone, surpassing the long-awaited $40,000 mark, marking a breakthrough for the cryptocurrency. BTC is currently trading at $41,246 on strong volume, signaling a revival after 18 months of volatility. The surge has refocused attention on the impact of the upcoming confirmation of exchange-traded funds (ETFs) and their impact on the future of the cryptocurrency market.
ETFs and the potential trajectory of Bitcoin
Analysts speculate that the imminent confirmation of the Bitcoin ETF could be the catalyst that drives BTC to $50,000. The cryptocurrency market is seething with FOMO (Fear of Missing Out) and FUD (Fear, Uncertainty, and Doubt) about the potential impact of ETFs. The current situation, with inflation cooling and talk of a possible Fed rate cut in 2024, is setting the stage for a global market rally.
The digital asset industry is eagerly awaiting the SEC’s ruling on applications by major firms such as BlackRock Inc. seeking approval for the first spot Bitcoin exchange-traded fund in the United States. These ETFs are expected to receive SEC approval by January and have a significant impact on the digital asset market.
Also Read: Bitcoin Prediction: Matrixport Expects $60,000 Price Pre-halving.
BTC’s future trajectory and technical analysis
According to technical analysis, the next resistance for BTC could be $42,330. Despite the recent surge, our analysis highlights that open interest (OI) is relatively low, which historically has led to declines of $2,000 before stabilizing. This means that a bottom is likely to form after the OI declines.
It is currently trading at $40,500 with a local bullish void of $39,500. Some expect it to fall to $30,000 or $35,000, but there is skepticism about the validity of these predictions.
As prices continue to rise, OI remains relatively low.
Even when we got a flush at these levels of OI, the biggest we saw was a $2,000 drop before OI hit the “baseline” that marks the bottom.
We are trading at 40.5k.
Nullifying regional strengths… https://t.co/lyt83ddz58 pic.twitter.com/o4Xz7soIut
— CrediBULL Crypto (@CredibleCrypto) December 4, 2023
Maintaining their positions, analysts are confident that Bitcoin will maintain its continued momentum beyond the 40,000-plus zone. Some industry experts have even predicted that BTC will reach $60,000 before the next halving in April 2024.
The recent surge past $41,000 has reignited market enthusiasm and predicted a promising trajectory for Bitcoin’s value in the near future. The impact of the ETF confirmation remains a pivotal point driving BTC’s trajectory, and market experts are closely monitoring its impact on the future of the cryptocurrency market.