Many cryptocurrencies have been advancing last several days and this can be attributed to the excitement around the possible approval of BlackRock’s spot Bitcoin ETFs application.
A spot Bitcoin ETF holds appeal as it offers investors a convenient avenue to access Bitcoin, mitigating the intricacies tied to directly acquiring, safeguarding, and overseeing the digital currency. Consequently, this enhanced accessibility caters to a wider spectrum of investors, spanning from retail to institutional.
Bitcoin surged this Tuesday above $35,000 for the first time in approximately 17 months and it is important to say that the current optimism boosted the appetite for Bitcoin among whales and institutions. Many crypto analysts stated that the SEC will likely give the green light for the first Bitcoin ETFs before the end of January 2024 but there are still uncertainties that are connected with ethical and security reasons.
So where is the price of Bitcoin (BTC) going next, and what can we expect from November 2023?
Today, Crypto Lists will discuss Bitcoin (BTC) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Bitcoin trading volumes hit their highest levels since March
- 2 Bitcoin is likely in the early stages of a bull market
- 3 Technical analysis for Bitcoin (BTC)
- 4 Important support & resistance levels for Bitcoin (BTC)
- 5 What speaks for the rise in the Bitcoin (BTC) price
- 6 What indicates a downfall for Bitcoin (BTC)
- 7 What do analysts and experts say?
Bitcoin trading volumes hit their highest levels since March
Investor sentiment on the cryptocurrency market has improved this trading week; Bitcoin (BTC) has surged above the $35,000 level, and the assets in the crypto space have begun to regain their footing.
According to analysts from JPMorgan and Bloomberg Intelligence on Wall Street, it appears highly probable that the SEC will approve a Bitcoin ETF by January 10, 2024. Such approval is anticipated to stimulate the cryptocurrency markets by attracting substantial institutional investments, primarily from hedge funds.
Some crypto analysts say that Bitcoin’s open interest is now at its highest level since the FTX collapse, and on-chain data is signaling aggressive accumulation among Bitcoin whales. Trading volumes for the world’s largest cryptocurrency hit their highest levels since March and according to The Block’s data dashboard, the seven-day moving average for spot exchange volumes across multiple exchanges hit $24.12 billion on Thursday and $23.98 billion on Friday, respectively. In comparison, Bitcoin trading volume on exchanges was at $11.02 billion on the first day of the month.
Trading volumes represent a crucial measure since elevated volumes indicate heightened interest and participation within a market. This signifies a larger number of individuals engaging in active buying and selling, resulting in increased liquidity and greater levels of market volatility.
Whale transaction tracker Whale Alerts has shown various BTC transactions amounting to millions of dollars and it is important to say that according to the latest data, Bitcoin whales have purchased over 30,000 BTC worth approximately $1 billion in the last five days alone.
When whales increase their trading activity, it usually indicates that they are getting confidence in the underlying coin’s short-term price prospects. If the whales continue to buy Bitcoin even more, the price of Bitcoin could have an even bigger jump in the upcoming weeks. Despite the current slight fall, the price of BTC is looking bullish and there is a chance to see a test of the $35,000 zone very soon.
Bitcoin is likely in the early stages of a bull market
On October 26, 2023, Lucas Outumuro, the Head of Research at crypto analytics company IntoTheBlock (ITB), delves into the question of whether Bitcoin is embarking on a new cycle due to its robust performance throughout the year.
His examination centers on the analysis of supply and demand dynamics, drawing insights from historical trends and on-chain data. Lucas concluded that on-chain indicators suggest that Bitcoin is likely in the early stages of a bull market. He noted that while past patterns don’t guarantee future returns, the alignment of positive supply and demand factors increases the likelihood of another Bitcoin cycle.
Amid the cryptocurrency community’s increasing optimism surrounding the potential approval of spot ETF applications, there also exists a simultaneous undercurrent of apprehension. This uneasiness stems from the SEC’s evident determination to reinforce its oversight of cryptocurrency regulations. In an interview with Bloomberg TV on October 24, 2023, Tom Gorman, a former attorney for the U.S. Securities and Exchange Commission (SEC), discussed the uncertain prospects of a spot Bitcoin ETF gaining approval from the SEC.
Gorman emphasized that permitting a Bitcoin to be listed on a securities exchange would pose a significant challenge, characterized as a complex endeavor that would probably demand substantial regulatory actions to guarantee safety and adherence to regulations.
He also pointed out that organizations such as Hamas are utilizing Bitcoin to fund their activities, giving rise to ethical and security concerns. In the weeks to come, Bitcoin and the cryptocurrency market will remain significantly influenced by the decisions of the U.S. Securities and Exchange Commission (SEC), alongside concerns of a recession, escalating tensions in the Middle East, and the assertive monetary policies of major central banks.
Technical analysis for Bitcoin (BTC)
Bitcoin (BTC) has advanced more than 30% since the beginning of October 2023, rising from $26,961 to a high of $35,157. The current price of Bitcoin (BTC) stands at $34,574 and despite the minor correction, bulls continue to control the price movement. Many analysts say that more investors could purchase Bitcoin (BTC) in the weeks ahead, and as long the price of BTC is above $32,000, the price of this crypto remains in the BUY-ZONE.
Important support & resistance levels for Bitcoin (BTC)
On this chart (the period from March 2023), I marked important support and resistance levels that can help traders understand where the price could move. Bitcoin (BTC) bulls have been feeling more confident the last several days, and if the price advances above $36,000, the next target could be resistance that stands at $40,000. The important support level is $32,000, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $30,000. If the price drops below $30,000, which represents another strong support, the next target could be located around $28,000.
What speaks for the rise in the Bitcoin (BTC) price
Bitcoin is trading approximately 30% up from October 12 lows of $26,537, and if the price advances above the resistance that stands at $36,000, there is a big chance that the price could reach $40,000. Bitcoin whales increased their activity over the past several days, which demonstrates renewed interest and confidence in Bitcoin while some analysts say that Bitcoin is likely in the early stages of a bull market. It is looking increasingly likely that a Bitcoin ETF will be approved by early 2024, and because of this many crypto analysts say that more investors could purchase Bitcoin in the weeks ahead, which could lead to further growth.
What indicates a downfall for Bitcoin (BTC)
Bitcoin has an important support level at $32,000, and a break below this level would indicate that BTC could probably test the important support level that stands at $30,000. The highly volatile nature of the cryptocurrencies may scare investors again to sell BTC if some negative news happens in the cryptocurrency market – like BlackRock didn’t get the SEC approval or a prominent crypto firm going bankrupt. At the same time, the macroeconomic landscape remains uncertain; major central banks continue aggressively fighting inflation by raising interest rates, and risk-on assets such as cryptocurrencies could suffer again in such conditions.
What do analysts and experts say?
Bitcoin (BTC) has surged past the $35,000 mark this week, reaching an intraday high of $35,157, and the main question is, does it have more bullish strength left, which depends on both technical and fundamental factors. Growing speculations around the first Bitcoin ETF approval in the U.S. are certainly positive news for the flagship cryptocurrency, and according to many analysts, the approval may not be far off.
Bitcoin whales have purchased over 30,000 BTC worth approximately $1 billion in the last five days alone and Lucas Outumuro, the Head of Research at crypto analytics company IntoTheBlock (ITB) said that Bitcoin is likely in the early stages of a bull market. In the upcoming weeks, the price of Bitcoin will continue to be notably impacted by the actions taken by the U.S. Securities and Exchange Commission (SEC), as well as concerns about a potential economic downturn, increasing tensions in the Middle East, and the proactive monetary strategies of leading central banks.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.