Bitcoin price prediction: After rising above $37,900, the price of BTC has returned to the $36,600 area
Bitcoin price prediction: After rising above $37,900, the price of BTC has returned to the $36,600 area
After passing the $37,900 mark on Thursday, Bitcoin has dropped significantly and is trading in a range of $36,600 to $36,700.
Bloomberg analysts believe the main reason for the sharp rise in BTC prices is the anticipation of the U.S. Securities and Exchange Commission's (SEC) approval of spot Bitcoin ETFs this year, as the first window for the regulator to approve 12 outstanding ETFs opened on Nov. 9.
James Seyffarth wrote on his X (Twitter) page that the SEC could approve Bitcoin-based ETFs by Jan. 10, with a 90% chance of approval.
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At the same time, the supply of BTC on exchanges remains below its annual maximum on May 3, 2023. During this period, the amount of Bitcoins on cryptocurrency exchanges decreased by 200,000 BTC. In addition, many investors are buying up Bitcoins and withdrawing them from exchanges for long-term storage, indicating their positive attitude toward the further growth of the largest cryptocurrency. On November 7th, for example, long-term holders bought 92% of all newly minted BTC.
As Bitcoin continues to leave exchanges, liquidation tends to have a significant impact on the price. In the last 24 hours alone, more than $126 million worth of BTC shorts have been liquidated, with more than $74.6 million liquidated in 12 hours.
Although Bitcoin has fallen back after a sharp spike, experts pointed out that the breakout above the key resistance level of $37,000 gives confidence in BTC's potential for further gains.
It's worth noting that not all experts are as optimistic about Bitcoin's continued rally. Il Capo of Crypto, one of the most famous bearish analysts of the cryptocurrency market, believes that this rally is trying to extend as long as possible and is artificial. He came to this conclusion after analyzing hundreds of technical charts.
Cryptocurrency critic Peter Schiff, a staunch opponent of Bitcoin, said that the launch of a bitcoin ETF will lead to the collapse of the digital asset market. Schiff believes that by the time the Bitcoin ETF is launched, many willing people will have already bought BTC and, once approved, will want to sell their assets to make a profit, and there will be few people willing to buy them. This will eventually lead to a market crash.
Bitcoin is currently down 0.36% to trade at $36,615.62.
The next resistance level is near the $37,000 level, a break of which will allow BTC to move to the $37,300 point, and another break will open the door for a move to $38,000.
If Bitcoin fails to break above the $37,000 resistance zone, it will fall to the $36,500 support level. The next major support is near the $36,200 zone, and if it is broken, the asset will fall to $35,500 or lower.
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