Bitcoin Hits New Highs for the Year
Bitcoin (BTC) has surged past $38,000, reaching new highs for the year. It is now on track to potentially retest $40,000 in the near future. The cryptocurrency is currently trading at around $37,800 with a 1.5% gain for the day.
Despite the Thanksgiving holiday weekend in the US, trading volumes remain high at over $21.5 billion so far. This is higher than Monday’s volume of $20.8 billion and Thursday’s volume of $14.2 billion.
The recent surge in Bitcoin’s price comes after Binance, the world’s largest cryptocurrency exchange, settled dual lawsuits with the US Department of Justice (DoJ) and Commodity Futures Trading Commission (CFTC). The settlement involved paying fines of over $7 billion and ex-CEO Changpeng Zhao stepping down and pleading guilty to one offense.
Bitcoin’s Ascending Triangle Structure
Bitcoin has been forming an ascending triangle structure over the past few weeks. This structure is characterized by consistent resistance at a certain level ($38,000) and higher price lows as bulls continue to buy the dip.
Technicians see this structure as a bullish indicator, suggesting that buying pressure is building up and a breakout is imminent. Bitcoin’s recent push above $38,000 indicates a potential breakout towards $40,000 and a break above the ascending triangle pattern.
US Market Participants’ Impact
It is still too early to confirm the breakout since US market participants are largely absent during the holiday weekend. Traders should monitor trading conditions on Monday when US markets reopen to gauge if US investors are aggressively buying into Bitcoin.
There are several factors that could support a bullish BTC price, including Binance’s settlement reducing systemic market risk, potential spot Bitcoin ETF approvals, the upcoming Bitcoin halving in 2024 reducing sell pressure, and positive macro conditions such as rising US stocks and falling bond yields.
A Promising Outlook for Bitcoin
If these factors align favorably, Bitcoin could see a push towards 2022’s highs in the $48,000 region by early 2024. December is historically a strong month for Bitcoin, adding to the potential bullish narrative.
Hot Take: Bitcoin Continues to Surge
Bitcoin has broken through resistance levels and reached new highs for the year. With a potential retest of $40,000 on the horizon, the cryptocurrency market is buzzing with excitement. The recent settlement by Binance has removed systemic risk and increased the likelihood of spot Bitcoin ETF approvals. Traders should closely monitor trading conditions when US markets reopen to gauge investor sentiment. With various bullish factors at play, including reduced sell pressure and positive macro conditions, Bitcoin’s outlook remains promising. If everything falls into place, a push towards previous highs is highly likely in the coming months.
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