- On December 6, Bitcoin reached prices last seen in April 2022.
- Optimism around spot ETFs could help propel BTC to $50,000.
Bitcoin [BTC] rose 4.88% in the last 24 hours to reach $43,522 at the time of writing, per CoinMarketCap. This rally, supported by a host of factors, helped the King cross $44,408 in the early hours of December 6.
Staying true to its name, the King Coin rose 16% in the first five days of December, setting the market on fire and causing a flurry of activity. Keeping these numbers in mind, will BTC reach $50,000 before 2024 arrives?
Is Panic Buying Behind BTC’s Rise?
According to most crypto experts, panic buying could be a major reason why Bitcoin’s price continued to rise. In particular, there could be an element of FOMO and FUD in the market, driving investors to buy more in anticipation of further price increases.
Such as a report from Matrix gate places it,
“Traders do not have enough upside, this is the conclusion from the high premium at which perpetual futures are trading. This indicates panic buying by traders closing shorts or adding leverage to longs.”
However, panic buying is not the best idea when it comes to cryptocurrencies, given their extremely volatile nature.
Price increases resulting from these methods have historically been temporary, and this is not a good strategy for long-term investors.
So the above report from Matrixport talking about traders closing shorts could be an indicator of a big drop in the coming days.
Anyway, don’t take this as investment advice and don’t forget to consult DYOR before investing in the king coin at this time.
This panic buying behavior caused the total cryptocurrency market capitalization to reach $1.5 trillion on December 5, while it stood at $1.59 trillion at the time of writing. CoinMarketCap.
How spot ETFs came into play
The connection between spot ETFs and the price of Bitcoin cannot be understated.
As the market continues to bet on the SEC-approved spot ETFs for both Bitcoin and Ethereum, investors have jumped on the “first-mover advantage” train, hoping to secure some king coins before prices rise further.
To this extent, Bloomberg analyst James Seyffart said on December 5 noted that Swiss company Pando had joined the race to launch a BTC spot ETF.
Before that, on December 1, financial attorney Scott Johnsson confirmed that the SEC’s deadline to approve the first batch of spot ETFs was between January 5 and 10.
Now official. https://t.co/NONkklEJq2 pic.twitter.com/V2Q2L3u5o9
— Scott Johnsson (@SGJohnsson) December 1, 2023
Seyffart too confirmed:
“The window officially runs from January 5 to 10. This actually means that any approval orders will come on Monday, January 8, Tuesday, January 9, or Wednesday, January 10. Mark your calendars, folks.”
If the SEC sticks to its proposal timeline, it would help push Bitcoin prices even higher. A larger bullish market could take BTC not only to $50,000, but even to $60,000 by January 2024.
However, we should clarify that this is merely speculation, what about isms if you will – a possible look at what Bitcoin can achieve. Regardless of whether BTC reaches $60,000, it appears that optimism is enough to keep the market going for now.
In its previous report, AMBCrypto noted that market optimism surrounding ETF approvals not only helped BTC, but also Ethereum [ETH] also.
It is striking that the king of the altcoins saw a price increase of 3.76% in the last 24 hours. $2,274.99 at press time.
Will Bitcoin’s Rally Continue?
Bitcoin’s statistics showed positive signals about the price trajectory in the coming days. Notably, Open Interest crossed the $20 billion mark on December 6, a number it reached for the first time since December 2021.
Source: Coinglass
Traders often use Open Interest as an indicator to confirm trends and trend reversals. The rising Open Interest and price indicated that new positions were being taken and strong demand for BTC at the time of writing.
So, BTC could be poised to climb higher. But to reach $50,000, the king coin needs to reverse the levels around $47,000 to support.
Source: BTC/USD, TradingView
According to AMBCrypto’s analysis of the chart above, BTC’s RSI stood at 78.42 at the time of writing – an overbought zone. The metric showed the possibility of increasing selling pressure.
This idea was supported by the MFI, which showed a slight decline at press time.
Read Bitcoins [BTC] Price prediction 2023-24
However, BTC was holding above the 50-day and 200-day EMAs at the time of writing, showing the possibility of continued price appreciation.
So, if investors continue to HODL and don’t give in to panic selling, Bitcoin could catapult towards the $50,000 mark before the arrival of 2024.
The post Bitcoin: If $44K is here, can $50K be far behind? appeared first on AMBCrypto.