Bitcoin Trading Volumes Reach Record Highs
Investor sentiment in the cryptocurrency market has notably improved this week. Bitcoin (BTC) surged past the $35,000 mark, and the broader crypto market is regaining momentum.
According to analysts from JPMorgan and Bloomberg Intelligence, it seems highly likely that the SEC will approve a Bitcoin ETF by January 10, 2024. Such approval would likely fuel market growth by attracting substantial institutional investments, particularly from hedge funds.
Some analysts report that Bitcoin’s open interest is at its highest since the FTX collapse, with on-chain data showing significant accumulation by Bitcoin whales. Bitcoin’s trading volume reached its highest levels since March, with The Block’s data dashboard showing seven-day moving averages of $24.12 billion on Thursday and $23.98 billion on Friday. This is a notable increase from Bitcoin’s trading volume of $11.02 billion on the first day of the month.
High trading volumes are significant because they indicate increased market participation, resulting in higher liquidity and greater price volatility.
Whale transaction tracker Whale Alerts has recorded large BTC transactions worth millions of dollars. In fact, Bitcoin whales have purchased over 30,000 BTC, valued at about $1 billion, in the last five days alone.
When whales become more active, it often suggests growing confidence in Bitcoin’s short-term price movement. If this trend continues, Bitcoin’s price could see another significant rise in the coming weeks. Despite a slight drop, Bitcoin’s overall outlook remains bullish, and we may soon see a test of the $35,000 level once again.
Bitcoin May Be Entering the Early Phase of a Bull Market
On October 26, 2023, Lucas Outumuro, Head of Research at crypto analytics firm IntoTheBlock (ITB), analyzed whether Bitcoin could be starting a new cycle due to its strong performance in 2023.
His analysis focused on supply and demand dynamics, using historical data and on-chain indicators. Lucas concluded that Bitcoin may be entering the early stages of a bull market. While historical patterns are not always predictive, the current alignment of positive supply and demand factors makes it more likely that Bitcoin is at the start of another bullish phase.
However, there remains some caution within the crypto community, especially surrounding the potential approval of Bitcoin spot ETFs. Tom Gorman, a former SEC attorney, warned in an October 24, 2023 interview with Bloomberg TV that listing Bitcoin on a securities exchange would be a complex and regulatory-heavy process. He highlighted ethical and security concerns, such as the use of Bitcoin by groups like Hamas to fund activities.
As the SEC’s actions and decisions unfold, Bitcoin’s price will likely continue to be influenced by broader macroeconomic factors, including recession fears, rising geopolitical tensions, and tightening central bank monetary policies.
Technical Analysis for Bitcoin (BTC)
Bitcoin (BTC) has surged more than 30% since the beginning of October 2023, rising from $26,961 to a peak of $35,157. As of now, Bitcoin (BTC) is trading at $34,574. Despite some minor corrections, the bulls remain in control. Analysts believe that more investors may begin purchasing Bitcoin in the coming weeks, and as long as Bitcoin’s price remains above $32,000, it is still considered to be in the BUY-ZONE.
Key Support & Resistance Levels for Bitcoin (BTC)
In the chart from March 2023, key support and resistance levels are outlined to help traders predict potential price movements. Bitcoin (BTC) bulls have grown more confident recently, and if Bitcoin rises above $36,000, the next major resistance level is $40,000. A key support level sits at $32,000. If Bitcoin breaks below this, it could trigger a “SELL” signal, with potential drops toward $30,000. A fall below $30,000, another strong support level, could lead to a further dip to around $28,000.
Factors Supporting a Bitcoin (BTC) Price Increase
Bitcoin has risen by approximately 30% since its lows on October 12, when it traded at $26,537. Should it break the resistance at $36,000, the next significant target could be $40,000. Increased activity from Bitcoin whales shows renewed confidence in the cryptocurrency, and many analysts are now forecasting that Bitcoin is likely in the early stages of a bull market. Additionally, the potential approval of a Bitcoin ETF by early 2024 could drive more institutional buying and further fuel price growth.
Potential Indicators of a Bitcoin (BTC) Price Drop
Bitcoin’s key support level is at $32,000. If the price drops below this level, Bitcoin could test the next major support at $30,000. The cryptocurrency market is highly volatile, and negative news, such as a failure to approve the Bitcoin ETF or the collapse of a major crypto firm, could cause further sell-offs. Additionally, broader economic factors, such as the ongoing battle against inflation by central banks, could impact the prices of risk-on assets like cryptocurrencies.
Nêrînên ji analîst û pisporan
Bitcoin (BTC) recently surged past $35,000, and analysts are now considering whether the price still has more bullish potential. Speculation around the approval of the first Bitcoin ETF in the U.S. is bolstering Bitcoin’s outlook. Many analysts are optimistic that approval may come soon.
Bitcoin whales have purchased over 30,000 BTC, worth around $1 billion, in just five days. According to Lucas Outumuro, Bitcoin is likely in the early stages of a bull market. In the coming weeks, Bitcoin’s price will be significantly impacted by SEC decisions, economic conditions, geopolitical issues, and central bank policies.
Ava dikan: Cryptocurrency investments are highly volatile and may not be suitable for all investors. Always invest money you can afford to lose. This content is provided for educational purposes and should not be considered financial advice.
