2023-11-27 12:11:00
Bitcoin price exceeds the $38,000 resistance level, coinciding with bulls seeking to test the $40,000 level. What is Bitcoin’s next station?
Currency logo – Source: Adobe The price of Bitcoin (Bitcoin-BTC) recently exceeded the level of $38,000 and settled above it to record new price peaks for the current year, with an increased possibility of testing the level of $40,000 within a short period, as Bitcoin – the largest digital currency by market value – was traded. – Around the level of $37,800, achieving price gains of approximately 1.5% during the day. According to Yahoo data, trading volumes exceeding 21.5 billion are still high during the current trading session so far, exceeding the trading volumes recorded on Monday, which amounted to $20.8 billion, and their counterparts recorded on Tuesday, at $14.2 billion, despite the fact that most American shareholders did not participate in the market. With the Thanksgiving holiday coming up this weekend.
Bitcoin bulls have regained the lead in the market following a week of violent turmoil following Binance, the world’s largest crypto trading platform, settling with the US Department of Justice (DoJ) and the Commodity Futures Trading Commission (CFTC) in two lawsuits. Against it, the platform was forced to pay fines exceeding $7 billion, in addition to forcing the former CEO of the platform, Changpeng Zhao, to step down from his position and plead guilty, which might expose him to one year in prison.
By the end of the week’s trading, the majority of analysts’ opinions agree that the settlement completed by the Binance platform has spared the crypto sector major risks such as the collapse of this trading platform. These developments have also enhanced the possibility of obtaining close approval from the Securities and Exchange Commission for requests to establish a traded fund on the stock exchange for immediate trading. For Bitcoin (spot Bitcoin ETF), which may explain the price of BTC recording new annual price peaks.
Where will the price of Bitcoin go next?
In light of the recent price increases, it appears clear that the price of Bitcoin is attempting to overcome the ascending triangle pattern formed over the past few weeks and stabilize above.
These technical patterns appear when the price of an asset repeatedly faces resistance at a specific price level (which is the $38,000 level in relation to the price of Bitcoin), but the ascending triangle pattern also indicates constantly rising levels of support as a result of buying these assets if their price has previously declined. Bulls.
Technical analysts also believe that the formation of the aforementioned pattern gives an indication of an increase in the price due to increased buying pressure, which will lead to a price penetration in the upward direction. Although the price of Bitcoin has not stabilized above the $38,000 level except for a short period recently, we can consider this price movement an indication. The possibility of the price heading towards the $40,000 level in a stronger way and being able to overcome the current ascending triangle pattern during the next short period.
Bitcoin price chart – Source: TradingView It is useful to point out that the price of BTC was able to reach the level of $38,400 earlier in the current trading session, but we cannot confirm that a price breakthrough occurred due to the price falling immediately following that to the highest levels of 37,000. $, as traders in the US market must “agree” to an upward breakthrough in Bitcoin before it can be confirmed, which was absent from the scene in Friday’s trading.
Traders should closely monitor trading conditions on Monday, coinciding with the start of US market trading and the return of the largest source of liquidity in the world to the forefront of events. If the price exceeds the $38,000 level and settles above it once more during the current wave of increased trading volumes, it is possible to conclude that American investors will rush towards… Buying BTC because they believe its price will rise further.
Traders should also not ignore the possibility of the price trend of Bitcoin continuing to rise, given several factors, including the market avoiding major risks following the Binance platform reached a judicial settlement, in addition to the approaching date for the possible approval of establishing an exchange-traded fund for immediate trading of Bitcoin, without forgetting the process of The upcoming Bitcoin halving in 2024 will play a role in reducing monthly selling pressures by miners. Macroeconomic conditions recently support the upward trend of Bitcoin, with the rise in US stock prices and the decline in US revenues in line with the expectation that the Federal Reserve will begin reducing interest rates during the next year.
Accordingly, there are many likely circumstances for the possibility of an increase in the price of Bitcoin during the month of next December, which is historically known to be a positive month for the price of the sector leader, and if the influencing factors go as planned, such as improving macroeconomic conditions and approval of requests to create an ETF for spot trading, The probability of the price launching towards the 2022 price peaks at $48,000 will increase early next year.
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