Bitcoin quotes spent last week in consolidation, settling at new local highs. Despite the strong growth shown in the second half of October, there were not many people who wanted to fix profits and sell the main cryptocurrency. Unable to find good reasons for decline, market participants continue to push Bitcoin quotes upward after a short pause. Today, the price exceeded the level of 36000 for the first time since last spring, and the growth potential is still not exhausted.
The main driver of the upward movement is hopes for a speedy approval of Bitcoin ETFs in the U.S. According to information obtained by Bloomberg from its sources, the Securities and Exchange Commission (SEC) may approve the ETF listing in the next week. But even if this doesn't happen, analysts believe there is a 90% probability of the approval being granted by mid-January.
Josh Gilbert, an analyst at eToro, expects further rally development in the cryptocurrency market. Besides the situation with ETFs, the price growth is supported by the expected Bitcoin-halving in spring of 2024, as well as the end of the Fed's monetary tightening cycle. Zaheer Ebtikar, founder of fund Split Capital, predicts further rise in Bitcoin's price. In his opinion, the cryptocurrency market is highly vulnerable to the fear of missing out (FOMO), so traders tend to support the current price movement rather than trying to counter the trend.
According to Bloomberg analysts, Bitcoin's consolidation above the level of 36400 may mean a full-fledged transition of the market under the bulls' control. The first sign of buyers' dominance has already become a rise in price above the line of 200-day exponential moving average in mid-October, from which the current rally began. And in case of reaching the mark of 37000 analysts expect continuation of the upward trend with a medium-term target of 49000.
The mark of 37000 might just become the nearest target for Bitcoin buyers. It is unlikely that there will be a quick rise to the 49000 mark, but at least it should not take long to overcome the next 38000 mark.
The following trading strategy may be offered:
Buy BTCUSD at the current price. Take profit – 38000. Stop-loss – 35500
Also, traders can use a Trailing Stop instead of a fixed Stop-loss at their discretion.
This content is for informational purposes only and is not intended to be investing advice.
