The king of cryptocurrencies, Bitcoin, reached a new peak of $45,879, marking its highest price in the first months of 2024 and the best in the last 21 months. Investors who were confident that the bear market had ended are now reaping significant gains as Bitcoin effortlessly surpassed tough resistance levels. The surge has been attributed to several factors, including rumors of the U.S. Securities and Exchange Commission (SEC) greenlighting ETFs before the official approval process starting on January 4th.
Current CME Bitcoin futures are trading with a premium of $1,300, indicating a bullish sentiment among institutional investors. This premium suggests that short-term prices could potentially reach $47,000, with expectations that the price may approach $50,000 in the coming days and weeks.
The appetite for buying at premium prices is fueled by spot Bitcoin ETF issuers’ optimistic statements, hinting that the time for such investments is ripe. Meanwhile, the net flow to exchanges has turned negative for Bitcoin today, emphasizing the buying pressure mentioned earlier.
On the technical front, Bitcoin’s price is benefiting from the support of a rising triangle formation. As of January 2nd, the price entered the breakout phase of this formation, setting its sights on the $50,000 target.
Considering the increasing investor interest, technical breakout, rising volumes, and countdown to ETF approvals, the ongoing crypto rally is evident. If the Bitcoin rally gains momentum, it may put pressure on altcoins, but once Bitcoin consolidates at higher levels, altcoins could once again capture gains exceeding 100% monthly, as seen in previous weeks.
Investors should be on the lookout for two key developments: last-minute announcements from the SEC regarding official approvals and increased volatility at the opening of Asian markets each morning.
