Bitcoin price forecast: BTC has passed $36,000 and continues to grow
Bitcoin price forecast: BTC has passed $36,000 and continues to grow
On Thursday, the price of Bitcoin steadily surpassed $36,000 amid the expected approval of the BTC exchange-traded fund by the U.S. Securities and Exchange Commission (SEC).
The news that the SEC has begun discussions with Grayscale Investments regarding the details of the company's application to convert its GBTC trust product into a spot Bitcoin exchange traded fund (ETF) product fueled positive sentiment in the cryptocurrency market.
The SEC's approval of the spot Bitcoin ETF will provide retail investors with an easy and safe way to enter the digital asset market.
Many analysts expect Bitcoin to continue to rise, pointing to a number of developments in the BTC market.
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, stated in an interview with CoinDesk that the ETF is not yet factored into the Bitcoin price, confirming further growth for the asset following the approval of the spot Bitcoin ETF.
Another factor pointing to further BTC growth is the supply shortage in the Bitcoin market.
Recent data shows that 68% of Bitcoins in circulation have remained untouched for more than a year, indicating positive investor sentiment regarding the asset's future prospects.
"The data shows that investors continue to withdraw their coins for safekeeping, with more than 1.7 million Bitcoins withdrawn since May 2021," Glassnode analysts said.
Also, the On-Balance Volume (OBV) indicator confirms that traders are willing to take long positions at the Bitcoin price rather than sell the asset.
At the same time, there has been a significant increase in open interest in Bitcoin (BTC) futures, especially those offered by the Chicago Mercantile Exchange (CME).
Coinglass data showed that open interest in CME BTC futures rose 6.14% over the past 24 hours to $3.89 billion, and total CME BTC open interest surpassed the $100,000 BTC mark, confirming positive sentiment for a further Bitcoin bull rally.
Currently, the BTC price is up 3.70%, trading at $36,577.88.
If Bitcoin fails to gain a foothold above the $36,500 level, it could begin a decline towards the $36,150 support level, a breach of which would take the price to the $35,800 area and below.
In the opposite scenario, Bitcoin could test the resistance at $37,000, the breach of which would open the way to $37,500 and higher.
Read more: Ethereum consolidates strength ahead of further growth.
