Title: Cryptocurrency Boom: Bitcoin on the Verge of Hitting $40,000
H2: Bitcoin’s Remarkable Rally in 2023
Bitcoin’s chances of hitting $40,000 are top of mind for crypto speculators as they head into the final stretch of a year during which the largest digital asset more than doubled in price.
Over the past 11 months, Bitcoin has rebounded about 130% from 2022’s crypto rout, outstripping investments like stocks or gold. Hopes for Federal Reserve interest-rate cuts next year, and expectations that the US will allow its first spot Bitcoin exchange-traded funds, together created a potent elixir.
The rally weathered a US crackdown that put Sam Bankman-Fried behind bars for fraud at FTX and handed top crypto exchange Binance and its founder Changpeng Zhao rap sheets and big fines. For optimists, the drive to curb questionable practices and the recent flurry of ETF applications point to a maturing industry and the potential for wider crypto adoption.
H3: Analysts’ Predictions and Expectations
“In order to get to $40,000, we just need that approval for the spot Bitcoin ETF,” said Fiona Cincotta, senior financial markets analyst at City Index Ltd. The token recently lost some steam, in part as big swings in equities and currencies attracted the attention of investors, she said. Bloomberg Intelligence expects a batch of US spot Bitcoin ETFs to win Securities & Exchange Commission approval by January.
MicroStrategy Inc., the largest publicly-traded corporate holder of Bitcoin, last month bought $593 million more of the token, taking its pile to roughly $6.5 billion. Michael Novogratz, founder of Galaxy Digital Holdings Ltd., on Wednesday said Bitcoin a year from now may reach its 2021 peak of almost $69,000.
H3: Insights into Bitcoin’s Momentum
Bitcoin rose 1% to $38,121 as of 2:13 p.m. in Singapore on Friday. Smaller tokens like Ether also gained. Three charts below highlight key Bitcoin trends.
Bitcoin’s weekly relative-strength index, a momentum gauge, closed above 75 last week. While readings above 70 are viewed as signaling “overbought” conditions, the picture is not so straightforward.
A technical indicator that tries to capture the impetus behind an asset’s movements, the moving average convergence/divergence or MACD study, provides pause for thought. The MACD flags ebbing momentum of late, displayed by the span of bars showing negative readings. At the same time, the Bitcoin rally has struggled to push conclusively past $38,000.
H3: Market Insights and Options
The pattern of positions in the Bitcoin options market hints at a $37,000 to $40,000 trading range in December. The traders selling the bullish call options with a $40,000 strike are clearly willing to take the other side of the wager, indicating that the level is going to be a key test area for Bitcoin’s resurgence.
With Bitcoin on the verge of reaching the $40,000 milestone, all eyes are on the cryptocurrency market as investors and speculators eagerly await the outcome.
I have been writing about crypto for over two years. I have a vast amount of experience in the industry and my work has been featured on some of the biggest publications in the space.
