Bitcoin Breaks $40,000 and Sets Sights on $50,000
After being stuck around $30,000 for most of 2023, bitcoin has finally broken above $40,000 and has remained above that level throughout the week. The cryptocurrency has been gaining momentum and reaching new highs more frequently. It started December above $40,000 for the first time since April 2022 and has already increased by 16% this month. Chart analysts believe the next resistance level to watch is around $48,000, as bitcoin seems to surpass each identified resistance level with ease. Other experts have also identified similar levels of resistance.
Support Level and Optimism Surrounding Bitcoin ETF
The analysts are also looking at a new support level of approximately $38,000. The recent climb in bitcoin’s price can be attributed to the growing optimism surrounding a potential bitcoin exchange-traded fund (ETF). Meeting with the Securities and Exchange Commission (SEC), ETF issuers like BlackRock and Grayscale are incorporating agency feedback into updated filings. This development signals a potential institutionalization and maturation of the crypto asset class. The momentum driving these moves is unprecedented, fueled by factors such as the macro backdrop, ETF excitement, geopolitical developments, and fear of missing out (FOMO).
Momentum Propels Bitcoin Above Top Stocks
Bitcoin’s rally has pushed it to 20-month highs compared to top stocks in the market, including Apple, Tesla, Nvidia, Meta Platforms, Microsoft, Alphabet, and Amazon.com. As these stocks cool off while cryptocurrencies remain hot, this trend is expected to continue into year-end. Chart analysts will closely monitor the rally’s sustainability but believe that there is still plenty of steam left in this upward trajectory.
Hot Take: Bitcoin Poised to Reach $50,000
Bitcoin has broken above $40,000 and shows no signs of slowing down. With the next resistance level at around $48,000, the cryptocurrency is well-positioned to reach $50,000. The optimism surrounding a potential bitcoin ETF and the momentum driving these moves have contributed to bitcoin’s recent climb. As it outperforms top stocks in the market, bitcoin continues to attract attention from investors. While analysts remain cautious about the rally’s longevity, there is still significant potential for further gains in the near future.
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