The Bitcoin Price Surge
The price of Bitcoin (BTC) soared to nearly $38,000 on November 9, marking a new yearly high before experiencing a slight dip. This upward trend has been ongoing since the cycle low in November 2022. However, this surge has been more gradual compared to the previous cycle.
Bitcoin Uptrend Over Nearly a Year
Since its low of $15,470 in November 2022, the price of Bitcoin has increased by 135%, reaching its new yearly high on November 9. This came after a sharp correction where the price fell by 78% from its all-time high in November 2021.
Compared to the previous cycle, this correction was quite similar. However, the upward movement has been more gradual, increasing by 335% in 180 days following the December 2018 bottom before a short-term downward trend began.
The ETF’s Impact on Bitcoin
The imminent approval of a Bitcoin Exchange-Traded Fund (ETF) is expected to have a significant impact on the future price of Bitcoin. The approval will enhance accessibility and credibility for Bitcoin and foster mainstream adoption by increasing liquidity and reducing price volatility in the cryptocurrency market.
Furthermore, introducing a Bitcoin ETF is predicted to exert considerable influence on market liquidity and scalability, attracting institutional and retail investors while diversifying the investor base. This could result in decreased available Bitcoin for purchase.
BTC Price Prediction: What Does the RSI Say?
Traders commonly use the Relative Strength Index (RSI) as a momentum indicator to assess overbought or oversold conditions. The weekly RSI gives an extremely bullish signal since it crossed above 70 and into overbought territory. A similar increase would take Bitcoin to $180,000 by April 2024.
Another similarity between the two movements is that the price broke out from roughly 500-day horizontal resistance areas. Despite this bullish prediction, a weekly close below $30,500 could invalidate the trend leading to a potential 30% drop in BTC’s price.
Hot Take: The Future of Bitcoin
The future of Bitcoin looks promising with its recent surge to a new yearly high. The impending approval of a Bitcoin ETF could significantly impact its future price and market liquidity. However, caution is advised as any market fluctuation could alter these predictions.