Bitcoin Holds Support at $34,000 as Altcoins Join the Bullish Party
Bitcoin (BTC) came close to breaking above $35,000 this week but retreated to confirm support at $34,000. The rally in the largest cryptocurrency began last week after rumors of the United States Securities and Exchange Commission (SEC) approving a BTC spot exchange-traded fund (ETF) proposal by BlackRock. Since then, altcoins have also seen gains, with Ethereum up 16.7% in seven days.
JP Morgan analysts believe that if the SEC rejects the spot ETF proposals, it could face multiple lawsuits. However, most signs point toward the approval of the ETF, which could potentially push Bitcoin price to $45,000 by the end of 2023. The SEC may not want to engage in legal battles, especially after losing a related case against Grayscale Investments.
Bitcoin Price Reaches Resistance at $35,000
Bitcoin price retested resistance at $35,000 for the second time this week but failed to break out. However, dips have been minor, indicating that buyers still have control. Analysts suggest that this is just the beginning of a bull run and advise investors to be patient and take advantage of any dips. Bitcoin price is currently trading above key bull market indicators on the weekly chart.
The next breakout above $35,000 could push Bitcoin towards $38,000 and serve as confirmation for a bull market. However, traders should be cautious of an almost overbought Relative Strength Index (RSI), which could signal a correction. A pullback into the neutral area may present opportunities for new entries at lower prices.
Hot Take: Bitcoin Holds Strong Amidst Altcoin Surge
The recent rally in Bitcoin has brought it close to breaking above $35,000, while altcoins have also seen significant gains. Analysts believe that the approval of a BTC spot exchange-traded fund (ETF) by the SEC could push Bitcoin price to $45,000 by the end of 2023. However, if the SEC rejects the proposals, it may face multiple lawsuits.
Despite failing to break resistance at $35,000, Bitcoin price has remained strong with minor dips. This suggests that buyers are in control and that this could be the early stages of a bull run. Traders should be cautious of an overbought RSI and consider locking in gains during a potential correction.
Source: CoinGape
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