Why Is Bitcoin Going Up Today? BTC Price
Both technical and fundamental factors are the reason why is Bitcoin going up today. BTC Price is trying to break above the psychological support of $40,000.
Bitcoin price rally is acting against people’s expectations
and even some of the biggest setbacks in the past weeks couldn’t shake the
bullish momentum. This premature uptrend seems dangerous as the number of short positions on Bitcoin is still higher than the long positions in multiple
timeframes. With the Bitcoin Halving approaching, the situation gets even more interesting.
BTC Price Expectations:
Last month was challenging as news erupted could play a
FUD and dumping the price of Bitcoin. The CEO of Binance had to resign as a CEO
and Chairman Binance as he pleaded guilty to AML charges by US regulatory
authorities. However, it was very strange that this news couldn’t hurt the
price of Bitcoin or even Binance's own coin BNB. Instead, the BTC price today
is at the 2023 highest. The Binance saga dust is settling now however, the
legal tug-of-war for CZ redemption continues.
The price of the BNB coin claimed back the same levels after a very brief drop. Over $1 billion of assets were withdrawn from the exchange. If we look at the assets held in BTC by the crypto centralized exchanges, Binance is still at the top with nearly 500,000 Bitcoins. Moreover, the price of Bitcoin is now strengthening at the top and many altcoins are also gaining their highs like RUNE, Solana, and DogeCoin.
Bitcoin Price Today:
Bitcoin has entered the $40,000 zone and it might stay here for longer than we expect. The price of Bitcoin is the highest BTC price of 2023 with most of the altcoins being bullish. The market cap of cryptocurrency is above $1.5 trillion. The indicators are pointing to a strong buy situation and greed in the market. On the 4-hour chart, the RSI level is high and entering an overbought position. This price gain seems unsustainable if Bitcoin doesn’t come down for a minor price correction.
Ethereum price is above $2,200 Rune is above $7, and Solana and Luna Classic Price is making new highs – does that mean it’s the beginning of an all-season?
Why is the Bitcoin Price Up Today?
Bitcoin gained more than 16% in the last 30 days and over 136% in the last year. There are many reasons for Bitcoin and the entire crypto market being extra bullish while so many people are waiting for it to slump with their short positions.
Technical indicators:
Bitcoin is nearing the extreme Greed index after the bullish
waves. BTC Dominance is increasing as the price volatility increases. Ethereum
Dominance is also taking a major chunk from the market cap after it gains and
cements the $2000 price mark.
On short intervals, Bitcoin started making bullish patterns
like bullish flags and divergence that indicated cash inflows and bullish
moves. EMA 100 is acting as a strong local support for Bitcoin on the 4 hourly
chart.
Potential spot BTC ETF approval:
One of the main reasons for the current price rally to $40,000
is the possible Bitcoin Spot ETF approval. According to analysts the Binance
legal settlement actually played out positively for Bitcoin and cleared the way
for Bitcoin Spot ETF approval. Additionally, Microstrategy bought another $600
million in Bitcoins on November 30 and stands at an unrealized profit of $1.63
billion. The liquidity of Bitcoin has started mirroring the prior Bull
runs of Bitcoin.
Including BlackRock, Fidelity, ARK Invest, and 21Shares, numerous applicants tried to obtain the BTC ETF approval but it was refused by the SEC. The approval was delayed until November and now it is delayed again to January 10, 2024. An expected date of Bitcoin ETF approval is between January 5 to January 10 next year.
If BTC EFT is approved it creates a new market for Bitcoin where it can be traded on the forex exchanges like stocks. This adoption generates demand for Bitcoin which can increase the price of Bitcoin and the entire crypto market.
Some analysts believe that Bitcoin Spot ETF can bring in between $600 million to Bitcoin or an overall increase of $1 trillion in the crypto marketcap. According to Galaxy
Digital, the price of Bitcoin can increase up to 74% of the current Bitcoin
value.
Bitcoin Price Prediction After BTC Spot ETF Approval
Takeaway:
Bitcoin inflow is increasing and the resistance level of
$40,000 is broken. If Bitcoin turns this area in the coming as a value zone and
local support, it can increase up to $43,000 before a correction. However,
bears expect the price of Bitcoin to fall near $32,000 till January. If all
goes as planned, we might see a bull run before the halving and a new exception
in the price history of Bitcoin.
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This article is for informational purposes only and is not financial advice.
