According to the data, Bitcoin (BTC) continued its impressive rise, reaching $ 30,800 in the morning hours, marking its highest point since July 15. This increase came as Bitcoin outpaced gold with a 14% gain for the month, compared to gold’s 6.7% gain. Additionally, other altcoins also rose higher, influenced by BTC’s price. This resulted in liquidations worth millions of dollars. Meanwhile, six analysts shared their predictions for BTC and the overall crypto market. Here are the details…
Bitcoin price rose: So why?
Bitcoin’s recent bullish momentum is attributed to several factors. First, traditional rate-sensitive assets such as gold rose. This is due to rising tensions in the Middle East and ongoing speculation about the Fed’s tightening cycle. These events increased concerns about inflation and increased gold prices. “Rates are the biggest mover in macro right now, but surprisingly, rate-sensitive assets like gold are also seeing bullish momentum… which bodes well for BTC,” said Greg Magdini, director of derivatives at Amberdata.
Magdini also pointed out that war spending is traditionally inflationary and that the Fed is considering a pause in interest rate hikes as the U.S. economy remains strong. These factors create a favorable environment for Bitcoin, which is seen as an asset that offers excellent portability, inflation protection, and government-independent wealth preservation. Optimism surrounding the potential approval of a Bitcoin exchange-traded fund (ETF) that tracks Bitcoin’s spot price is also fueling the rally. Blockware Solutions analysts believe that investors are turning to the Bitcoin network as a safe haven during times of economic and geopolitical uncertainty.
Altcoin prices also rose: $65 million liquidation
Alex Thorn, President of Firmwide Research, highlighted the role of the options market in potentially creating an explosive move in Bitcoin’s price. Market makers have a net short gamma position, which can force them to buy high and sell low as the market moves, contributing to price volatility. In another development, Bitcoin’s strong performance throughout the week had a positive impact on various altcoins, pushing them above their respective resistance levels. In the last 24 hours, more than 65 million dollars of short positions were liquidated and a total of 98 million dollars of liquidation was achieved.
JPMorgan analysts expect spot Bitcoin ETFs to be approved within the next few months, possibly before January 10, 2024, but the exact timing remains unclear. The global crypto market cap currently stands at $1.11 trillion and has increased by 3.29% in the last 24 hours. Crypto analysts are closely monitoring Bitcoin’s progress and resistance levels in the $30,000 to $30,300 range are seen as significant. The overall sentiment is optimistic and there is potential for a new yearly high. This rally in Bitcoin also showed a significant difference compared to previous examples. According to Santiment, unlike previous ones, this time the increase is not limited to Bitcoin only. Because altcoins such as LINK, MATIC, APT and AAVE are making significant gains, indicating a notable divergence from Bitcoin’s movements.
Predictions also came from names such as Van de Poppe and Credibull.
Crypto analyst Michael Van de Poppe believes that Bitcoin faces the next resistance level, currently estimated to be between $30,000 and $30,300. “A breakout will eventually lead to a new yearly high. “I don’t expect that yet, I assume we will consolidate a little more since CME also closed at $29,690,” he said.
Another analyst, CrediBull, stated that we are witnessing a significant development in the Bitcoin market. “A nice weekly close – regaining the level we fell nearly 2 months ago, leading to the biggest liquidity event we have seen since the FTX crash / 15k bottom. “If you’re lucky, we can test the green zone again before continuing,” he said.
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