Bitcoin Storms Past $38,000 Once More, Anticipating Breakout To New Annual Peak
29 November 2023 - 12:00AM
NEWSBTC
Bitcoin (BTC) has again demonstrated its bullish momentum by
surging above the $38,000 mark. Breaking free from the recent
trading range between $36,500 and $37,500, BTC currently trades at
$38,100, slightly below its yearly high of $38,400 achieved on
Friday, November 24. However, this is just one of the many
milestones BTC has achieved during its ongoing bullish resurgence.
Bitcoin Achieves New 52-Week Closing Record According to crypto
trading firm The Birb Nest, Bitcoin has set a new 52-week closing
record by a small margin, holding above $32,000 for four
consecutive weeks, demonstrating the continued strength of the
uptrend. Per the firm’s analysis, the observed performance
aligns with the principles of Elliott Wave Theory and signifies the
presence of the third wave within the ongoing bull market. Related
Reading: Unlocking Bitcoin ETF Profits: Experts Reveals “Best”
Trading Strategy Notably, of the five waves outlined in the theory,
the third impulse wave is a visually captivating and crucial
element of the overall pattern. Following the consolidation phase
of the second wave that Bitcoin experienced between August and
October, as seen on the 1-day chart of BTC above, the emergence of
the third wave is characterized by a breakout that drives price
action in line with the prevailing trend. In particular, this wave
is known for its extended nature, which often exceeds the length of
the first wave, which began at the beginning of January 2023 for
BTC. The third wave exhibits a substantial extension relative to
the length of the initial wave, typically reaching the 161.8%
Fibonacci level. In simpler terms, the third wave can be
interpreted as a 161.8% Fibonacci extension of the first wave.
Solid Support Levels Reinforce Positive Outlook For BTC
According to The Birb Nest, key technical indicators further
support Bitcoin’s market momentum. The 200-week moving average (MA)
at $29,130 and the 50-week MA at $27,450 serve as solid support
levels, reinforcing the positive outlook for the cryptocurrency.
Additionally, Bitcoin’s correlation coefficient has risen to 0.75,
indicating an increased synchronization with the performance of the
S&P 500. This correlation can be viewed as a positive sign,
particularly as the S&P 500 and Nasdaq enter their ‘Best
Months’ strategy, which historically has been associated with
market gains. Related Reading: Crypto Analyst Predicts 4400% XRP
Price Surge To $27, Here’s When Furthermore, the firm believes that
anticipation surrounding the upcoming Bitcoin halving event and the
potential approval of a Bitcoin spot exchange-traded fund (ETF) is
fueling investor interest. These factors hint at the potential for
further market upturns and provide an optimistic outlook for
Bitcoin’s future. It remains to be seen if the current bullish
momentum will be sustained and if BTC can consolidate above $38,000
and target the $40,000 level yet to be reached in 2023. Featured
image from Shutterstock, chart from TradingView.com
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