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Bitcoin Bulls Eye $40,000. Is It Achievable?

Date:

  • Bitcoin Open interest touches new heights reaching $7 billion.
  • Bloomberg predicts a 90% ETF approval chance by Jan. 10.

Bitcoin’s recent meteoric rise to $37,967, a level not witnessed in nearly two years, has caught the attention of cryptocurrency enthusiasts and investors. This surge can be attributed to the growing anticipation surrounding a Bitcoin Exchange-Traded Fund (ETF) and increased interest from major institutional players.

Analysts at Bloomberg have weighed in, predicting a 90% chance of a spot Bitcoin ETF approval by January 10, even if it’s not approved in the near term. Notably, the U.S. Securities and Exchange Commission (SEC) has, thus far, rejected multiple applications for a spot Bitcoin ETF, including those from industry giants like BlackRock, Fidelity, ARK Invest, and 21Shares.

Moreover, CryptoQuant analysts are also bullish on the potential impact of ETF approval. It forecasts a staggering $1 trillion increase in Bitcoin’s market capitalization if the regulatory green light is given.

Amidst these developments, Bitcoin’s social dominance is soaring, with its trading volume surging by an impressive 51% in the past 24 hours. Additionally, open interest in Bitcoin futures has jumped to $7.2 billion. It indicates a high level of interest and activity in the market.

Meanwhile, in a related development, MicroStrategy, a prominent cryptocurrency advocate, reportedly invested $5.3 million to acquire 155 BTC at an average price of $34,194 in October. MicroStrategy’s total Bitcoin holdings now stand at 158,400 BTC, with an average purchase price of $29,587. At the current BTC price, it has seen its Bitcoin investment turn a profit of over $1.1 billion.

Will Bitcoin Hit $40K Very Soon?

An analysis of recent price movements suggests a bullish trend on the daily chart. It is with the 9-day exponential moving average (EMA) currently situated below the trading price at $35,572. However, the daily relative strength index (RSI) indicates an overbought condition, standing at 81.

Bitcoin Price Chart, Source: TradingView

If Bitcoin breaks above the $39,300 resistance level, it could set its sights on the $43,700 milestone. A breakthrough at this level might pave the way for a test of the key resistance level at $47,400.

On the flip side, a drop below the $34,230 support area could see Bitcoin testing the $33,590 level, with further declines potentially leading to a test of the $30,501 support level.

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