In anticipation of Bitcoin ETFs, a large number of FOMO buying pushed BTC** above $40,000. There are no major corrections to the preceding citation.
Over the weekend, Bitcoin (BTC)* breached the long-awaited $40,000 milestone with strong trading volumes that surprised the crypto community. As of press time, BTC is trading ***346%,* is $40,726, with a market capitalization of $796 billion and a trading volume of nearly $18.9 billion.
FOMO ** Bitcoin
This is the first time since May 2022, in 18 months, that Bitcoin** has breached the $40,000 mark. The cryptocurrency market is currently closely watching the impact of Fear Missed (FOMO) and Fear, Uncertainty, and Doubt (FUD) on the expected confirmation date of ongoing exchange-trading** ETFs. Analysts speculate that the development of the Bitcoin ETF will affect its trajectory towards $50,000.
As inflation shows signs of cooling, investors are becoming increasingly convinced that the Fed has ended a series of interest rate hikes. Attention has turned to speculation about a possible rate cut next year, which has created a favorable backdrop for global markets.
At the same time, the digital asset industry is watching for progress related to applications submitted by major players such as BlackRock to launch the first spot Bitcoin exchange** (ETF) in the United States. Bloomberg Intelligence expects that one of these batches may receive approval from the U.S. Exchange Commission (SEC) in January. The results of these applications will have a significant impact on the digital asset market.
"Bitcoin continues to be underpinned by optimism over the SEC's approval of ETFs and the Fed's rate cuts in 2024," IG Australia Pty market analyst Tony Sycamore wrote in a note. ”
Where is Bitcoin going next?
According to the technical chart, Bitcoin's next resistance level will be $42,330. In the latest analysis provided by Credibull Crypto, it was observed that open interest (OI) remains relatively low despite the persistence. The analysis highlights that the historical decline in OI has resulted in a maximum drawdown of $2,000 before reaching the baseline, indicating a possible bottom.
The current trade** is 405k, the local bullish void level is 395k。While some expected** a drop to $30,000, the analyst is skeptical of a drop to $35,000 and below, believing that this scenario is unlikely.
Referring to previous statements, Credibull Crypto stressed that no significant ** is expected once the 40K+ area is breached, maintaining confidence in this position. Some market analysts also expect BTC** to reach $60,000 before the next halving in April 2024.