Bitcoin Aims to Reclaim $40,000 as ETF Speculation Grows
Bitcoin (BTC) is currently targeting the $40,000 level as it seeks to reach a new all-time high. The speculation surrounding the potential approval of a spot exchange-traded fund (ETF) by US regulators is driving this upward momentum.
New Catalyst for Bitcoin’s Rally?
While the ETF news and upcoming halving event are seen as major catalysts for Bitcoin’s rally, some analysts suggest that there may be an additional factor at play. According to a post by renowned crypto analyst TradingShot on TradingView, Bitcoin might be on the verge of a significant global money supply rally, challenging traditional halving theory.
The analysis focuses on two key indicators of the global money supply: Chinese bond yields and the Chinese Yuan. TradingShot suggests that Bitcoin historically bottoms when the Yuan trend-line does, and its parabolic rally starts when the Chinese bond yield trend-line hits a lower low. The current situation indicates a potential upward movement in the Chinese bond yield trend line.
Contrary to common belief and traditional halving theory, this analysis suggests that BTC may be starting a new parabolic rally earlier than anticipated.
Bitcoin Targets $40,000
Bitcoin has recently reached its highest point since May 2022, increasing the likelihood of the cryptocurrency hitting $40,000. This year has been exceptional for Bitcoin, with a remarkable 130% rebound from the challenges faced in 2022.
The optimism surrounding potential interest-rate cuts by the Federal Reserve in the coming year and the anticipation of the US approving its first-ever spot Bitcoin ETF have contributed to these gains.
Moreover, after surpassing $38,000, most Bitcoin holders find themselves in a profitable position. As of December 1, 85% of Bitcoin addresses were in profit, marking the asset’s highest profitability in over two years.
Bitcoin Price Analysis
At present, Bitcoin is trading at $38,755 with daily gains exceeding 1%. Looking at the weekly chart, Bitcoin has experienced an almost 3% increase.
From a technical analysis perspective, bullish sentiments are dominant. The one-day gauge summary leans towards a ‘buy’ signal, while moving averages strongly suggest a ‘strong buy’. However, oscillators favor a ‘sell’ signal.
Considering the market conditions and price movement, Bitcoin appears to be on track to reach $40,000, a crucial level that could pave the way for a new record high.
Hot Take: Bitcoin’s Rally Driven by ETF Speculation and Global Money Supply
Bitcoin is currently experiencing a strong rally driven by speculation surrounding the potential approval of a spot ETF and an analysis suggesting a global money supply rally. The anticipation of these catalysts has propelled Bitcoin to aim for $40,000 and surpass its highest point since May 2022. Additionally, positive market conditions and technical analysis indicators support the upward momentum. With the majority of Bitcoin addresses in profit, this year has been particularly exceptional for the cryptocurrency. All eyes are now on whether Bitcoin can break through the crucial $40,000 level and achieve a new record high.
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