Bitcoin’s price action shows consolidation and significant volatility, focusing on the $38,000 resistance level and market sentiment indicators. How high can Bitcoin go?
Bitcoin (BTC) has shown resilience and bounced back above $37k levels after declining to $35k levels on Nov. 15.
BTC has maintained its bullish outlook despite a period of sliding prices influenced by the absence of significant developments in the spot Bitcoin exchange-traded fund (ETF) and other macroeconomic factors.
Moreover, over the past few weeks, Bitcoin’s journey has been marked by a pattern of higher lows and higher highs, a characteristic of a bull phase in the crypto market.
Greg Moritz of AltTab Capital remarks on the natural occurrence of pullbacks even in bullish markets, suggesting that the current scenario is a typical fluctuation within an overall positive trend.
Further bolstering Bitcoin’s position is the macroeconomic landscape, which presents interesting dynamics for cryptocurrencies.
The Federal Reserve’s policy adjustments in response to economic indicators and endorsements by financial institutions like BlackRock have contributed to a resurgence in crypto, reflecting a cautiously optimistic market sentiment.
Given Bitcoin’s current state within a rapidly evolving financial ecosystem, let’s see what factors are affecting BTC price and what’s the Bitcoin price prediction for the coming days.
Updated status and market expectations for spot BTC ETF
The SEC’s cautious stance on the approval of spot Bitcoin ETFs remains evident, as seen by the fact that, to date, no applications for these ETFs, including a notable submission from Global X, have been approved.
This consistent hesitance from the regulatory body has effectively narrowed the window for approving multiple ETFs, pushing the potential for a first spot Bitcoin ETF approval into 2024.
Attention is now turning towards the Jan. 10, 2024, deadline for the ARK 21Shares application, which stands as a significant date for investors and analysts monitoring the situation.
The SEC’s ongoing reluctance to approve spot BTC ETFs, even amidst growing interest in integrating cryptocurrencies into the mainstream financial sector, underscores the enduring regulatory hurdles within the crypto market.
Bitcoin price action and technical analysis
As of Nov. 21, Bitcoin’s price action has been fluctuating around the $37,000 mark, displaying the challenges it faces in reclaiming higher ground as a stable support level.
The 50-day exponential moving average (EMA) is well below Bitcoin’s current price at about $36,900, indicating a bullish state in the market. Bitcoin’s price movement is currently confined within a sideways channel, fluctuating between $36k and $38k level.
Furthermore, Bitcoin bulls and bears are engaged in a tug of war near the $36,400 support/resistance level, which has become a critical midpoint of the trading range for BTC. This pattern emerged after Bitcoin first spiked to $38,000 on Nov. 9, indicating a consolidation phase in its price movement.
The market also witnessed significant volatility, with a noticeable drop to the $34,750 level, signaling a cooling trend. However, a strong rally was observed on Nov. 16, with Bitcoin surging to a high of $38,000, mirroring its peak. This repeated peak forms a double top, suggesting $38,000 as a strong resistance level.
Meanwhile, the crypto fear and greed index is currently at 74 out of 100 points, indicating an elevated level of optimism within the cryptocurrency sector. The index experienced a drop from a weekly high of 77 achieved on Nov. 16, which denoted even more greed.
The fear and greed index is a crucial indicator of market sentiment, often used to gauge the emotional state of the crypto markets.
Bitcoin (BTC) price prediction
DigitalCoinPrice anticipates an optimistic Bitcoin price forecast for the coming years. Their BTC forecast for 2023 suggests a significant rise in Bitcoin’s value, estimating it to reach around $74,086.
Looking ahead to 2024, the BTC price prediction by DigitalCoinPrice becomes even more promising, with an expectation of Bitcoin’s price climbing to approximately $90,228.
On the other hand, CoinCodex offers a near-term Bitcoin price prediction that is a bit more conservative.
As per their forecast, by Nov. 29, Bitcoin is anticipated to be valued at about $54,343. This BTC price prediction, while lower than DigitalCoinPrice’s, still reflects a positive outlook for Bitcoin in the short term.
It’s crucial to approach these Bitcoin price predictions with caution, keeping in mind the volatile nature of the cryptocurrency market.
Remember, investing in cryptocurrencies like Bitcoin should always be done judiciously, never exceeding what one can afford to lose.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
