Bitcoin Price Breaks Above $38,000, These Are The Reasons
01 Dezember 2023 - 9:14AM
NEWSBTC
The Bitcoin price has risen above $38,000 in the last few hours,
and for the first time this year closed a 4-hour candle above this
crucial price level – a very bullish sign that BTC could rise
further. These are reasons behind BTC’s latest price surge: #1
Anticipation Of Spot Bitcoin ETF Approval The recent uptick in the
Bitcoin price can probably be attributed in part to developments
around the potential approval of a spot Bitcoin ETF. Bloomberg ETF
analyst James Seyffart stated on X, “Okay the window for potential
spot Bitcoin ETF approval is looking like it’s gonna be between Jan
5 & Jan 10 2024.” This observation follows the SEC’s
announcement about publishing the Franklin/Hashdex delays today,
December 1. Scott Johnsson, a lawyer at Davis Polk, agreed with
Seyffart, “This puts the comment period ending at January 5. Ark/21
Shares deadline on January 10.” Related Reading: 3 Bitcoin-Like
Proof Of Work Altcoins That Could Make You A Millionaire In 2024
Moreover, Nate Geraci of ETF Store brought further optimism with
his comments yesterday, “Another meeting yesterday between
Grayscale & SEC. Absolutely fascinated to see how this all
plays out, especially timing of GBTC uplisting vs launch of
competing spot BTC ETFs. Btw, if you’re tired of me tweeting about
this, good news is I think we’re approaching the finish line.”
These developments suggest that a spot Bitcoin ETF is only a
question of when, not if. They also show a growing consensus
between ETF applicants and the SEC, which only wants to fine-tune
all proposals before approving a batch or all 12 applicants
(besides Pando Asset) at once. #2 MicroStrategy Will Buy More BTC
Another driving force could be MicroStrategy’s unwavering
commitment to Bitcoin. The company’s latest filing revealed an
additional purchase of 16,130 BTC, amounting to roughly $608
million. This acquisition, at an average price of about $36,785 per
Bitcoin, takes MicroStrategy’s total holdings to 174,530 BTC.
However, what was even more important was the news that
MicroStrategy is already planning its next Bitcoin buys. The
company has entered into an agreement to offer up to $750 million
worth of class A common stock, a move interpreted by many as a
preparation for further Bitcoin purchases. This means that Saylor
will buy even more BTC in the coming weeks or months, definitely
making a positive impact on BTC price. The news is definitely
bullish for the price, while some traders might want to front run
it. #3 Market Dynamics The current market dynamics surrounding
Bitcoin’s price surge have been closely scrutinized by leading
crypto analysts, revealing nuanced insights into the behavior of
market participants. Crypto analyst Skew highlighted a specific
pattern in the buying behavior, indicating a strategic approach by
market players. Related Reading: Bitcoin Spot ETF In January 2024:
A New Player Just Joined The Game He stated “Fairly obvious taker
twap bidding on the corn here. Open Interest & Delta: Looking
like both longs & shorts are chasing this move.” This comment
suggests that both bullish and bearish traders are actively
participating, leading to heightened market volatility and price
movement. Additionally, Skew pointed out specific activity on the
Binance spot market: “Still persistent spot supply around mid $38K
area. Bid driven by spot takers & limit asks were filled. If
takers can sustain bid momentum & clear that supply then could
be looking for limit chasing on the bid for higher prices.”
Byzantine General, another crypto analyst, found another major
driver for the recent price action. He stated, “Spot markets are
still trading at a premium, not just Coinbase. And the fact that
USD markets are consistently trading a lot higher than USDT markets
makes me think that perhaps new money is flowing in.” #4 Breakout
Move On Lower Time Frames From a technical standpoint, crypto
pundit Scott Melker observed a breakout move on the lower time
frames. He noted, “Bitcoin breaking out on low time frame. “ In the
15-minute chart, Bitcoin has been trading within a descending
channel, a pattern marked by sequential lower highs and lower lows.
This typically reflects a bearish trend. However, a few hours ago,
the Bitcoin price has managed to break above the upper boundary of
this channel, a movement that is often interpreted as a potential
reversal signal. The low time frame breakout is significant for
traders because it indicates a shift in short-term sentiment,
possibly setting the stage for a continued upward trajectory in the
higher time frames. At press time, BTC traded at $38,326. Featured
image from Unsplash / Kanchanara, chart from TradingView.com
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