Bitcoin Approaches $37.3k Resistance Level, Potential to Reach $40k Mark
Bitcoin, the leading cryptocurrency, is edging closer to the $37.3k resistance level and could potentially reach the $40k mark. This bullish trend is attributed to the formation of a Bullish Pennant pattern and a Golden Cross on the BTC/USD daily price chart at the end of October 2023. The pattern triggered a $3,000 rally in Bitcoin’s value, indicating a positive sentiment among investors.
In addition to the technical indicators, the anticipation of the Securities and Exchange Commission’s (SEC) approval has also influenced the strategies of new market players. One such player is the newly introduced Bitcoin ETF Token (BTCETF), which launched its presale on Tuesday, November 7. To demonstrate commitment to investors, BTCETF has dedicated 25% of its total coin supply to staking rewards and implemented a burn tax on 5% of every transaction. Furthermore, it plans to burn 25% of its total supply upon meeting certain roadmap goals.
Despite the high levels of open interest in the market causing volatility, Bitcoin has continued to record growth. On Wednesday, November 8, open contracts reached a six-month peak, indicating increased market participation. These contracts could potentially influence future price fluctuations.
The listing of BlackRock’s spot Bitcoin ETF on the Depository Trust & Clearing Corporation (DTCC) website cannot be overlooked. This listing caused a significant 14% single-day price surge in Bitcoin on Sunday, October 24. The influence of institutional players like BlackRock in the cryptocurrency market is becoming more prominent.
Looking ahead, the approval of spot ETFs could catalyze further growth in Bitcoin’s value, especially as it nears its ‘halving’ event in late April 2024. During this event, the miners’ block reward will be halved to 3.125 BTC, which historically has led to increased scarcity and upward price pressure. However, if the ETFs are not approved, Bitcoin might experience a drop to $32.4k, as depicted on TradingView charts.
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