Bitcoin Price Holds Steady Above $34,000 Amidst Anticipation of ETF Approval and Halving
The price of Bitcoin (BTC) has remained relatively stable on Monday, maintaining support at $34,000. The weekend saw minimal activity in the market. Investors are eagerly awaiting the upcoming meeting of the Federal Open Market Committee (FOMC), where decisions regarding interest rates in the United States will be discussed.
Spot ETF Approval and Lawsuits
The crypto community is closely watching the Securities and Exchange Commission (SEC) for its decision on approving the first BTC spot exchange-traded fund (ETF) in the US. Companies seeking to operate these ETFs have been working tirelessly to modify their proposals in anticipation of potential approvals.
While the approval of the first Bitcoin spot ETFs is not guaranteed, reports suggest that the SEC is inclined to grant approval to avoid potential lawsuits. The agency previously lost a lawsuit against Grayscale, the largest digital asset fund manager, over the conversion of its Bitcoin Trust product to a BTC spot ETF. The fact that the SEC did not appeal this ruling indicates that approval for spot ETFs is imminent.
Bitcoin Price Bull Run Factors
In addition to potential ETF approvals, another factor that could contribute to the next Bitcoin bull run is the halving event scheduled for April 2024. Halving occurs every four years and reduces miner rewards by half, controlling inflation on the Bitcoin network. This decrease in newly minted coins affects supply and demand dynamics, leading to a significant price increase.
Historically, Bitcoin price bull runs have been associated with halving events. PlanB, creator of the Stock-to-Flow (S2F) model, predicts that the next halving is only six months away.
Bitcoin Price Outlook
Bitcoin price has repeatedly tested support at $35,000 since the breakout in October. These minor dips suggest that the market is in the early stages of a bull run, with buyers currently holding the upper hand. The Moving Average Convergence Divergence (MACD) indicator also indicates a buy signal, further supporting bullish sentiment.
Bitcoin price is currently above three key indicators of a bull market: the 21-week EMA, the 100-week EMA, and the 200-week EMA. A break and sustained hold above $35,000 would confirm an upcoming spike to $37,500 and potentially above $40,000.
However, if Bitcoin price continues to struggle below $35,000, bullish momentum may weaken. The invalidation of a bearish fractal increases the likelihood of a sharp spike towards $40,000.
Key support levels to watch are at $34,000, $31,000, and $28,000.
Hot Take: John’s Insights on Bitcoin Price
As an experienced crypto expert and Price Prediction Editor for CoinGape Media, John provides valuable insights into price trends and market forecasts. With his expertise in on-chain data analytics, NFTs, DeFi, CeFi, and the metaverse landscape, John keeps his audience informed about the dynamic crypto market.
Please note that the views expressed by John in this article are his personal opinion and are subject to market conditions. It is important to conduct your own research before making any investment decisions in cryptocurrencies. Neither the author nor CoinGape Media assumes responsibility for any financial losses incurred.
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