Investors are feeling more confident in a global market rally as signs of inflation slowdown in the US indicate that the Federal Reserve has completed its rate hike process and speculation of future interest rate cuts next year. Bitcoin and altcoins have experienced significant increases during this period, with Bitcoin surpassing $41,000, its highest level in 18 months.
Bitcoin ETF applications and the possibility of the Federal Reserve ending its rate hike process are among the closely watched topics in the cryptocurrency market. Bloomberg ETF experts believe that some companies may receive approval from the SEC by February 2024. The results of these applications will have a significant impact on Bitcoin and other altcoins.
According to Tony Sycamore, market analyst at IG Australia Pty, the price of Bitcoin is supported by optimism regarding the SEC’s approval of a spot ETF and the possibility of the Federal Reserve lowering interest rates in 2024.
According to technical analysis, the next resistance level for Bitcoin is expected to be $42,330. Although the price is moving upwards, cryptocurrency analyst CrediBULL Crypto pointed out that open interest levels remain low. Considering historical trends, when open interest reaches a bottom level, it only causes a $2 drop followed by an increase.
At the time of writing, the largest cryptocurrency was at $41,467, and for the upward trend to continue, the price needs to stay above $39,500. While some market observers expect a drop to $30,000, CrediBULL Crypto believes that the likelihood of the price falling below $35,000 is low. The analyst does not expect significant declines beyond the $40,000 mark, and some market analysts predict that the BTC price will continue to rise. Some even anticipate the price reaching $60,000 before the block reward halving in April 2024.