Bitcoin's value surged beyond $37,000, rebounding from a recent dip close to $34,000 earlier this week.
This upward momentum is fueled by revived optimism surrounding the potential approval of a Bitcoin spot ETF within the United States.
Despite the SEC postponing decisions on various crypto ETF applications, this setback hasn't discouraged Bitcoin investors, evident in the ongoing rally.
Both Bitcoin's funding rate and open interest have seen an uptick, signaling continued bullish sentiment among investors regarding the cryptocurrency's potential.
For the optimistic projection of Bitcoin reaching $40,000, the crucial threshold to avoid would be any price drop below $35,375, potentially halting this aspirational target.
Bitcoin Shows Resilience Amidst SEC Decision Anticipation
Bitcoin faced a challenge, yet it remained defiant, especially with investors anticipating the SEC's verdict on a new Bitcoin spot ETF. Those betting against Bitcoin found themselves ousted from the market, as the cryptocurrency surged back above the $37,000 mark.
Echoes of Last Week's Movement
According to TradingView data, Bitcoin initially slid to approximately $34,000 after encountering resistance at $38,000. Notably, the $38,000 level has remained steadfast since Bitcoin's downturn in May 2022. Presently, Bitcoin hovers around $37,118, maintaining position above a critical support zone that analysts consider a pivotal turning point.
Signs of Continuing Momentum
Material Indicators’ tweet hinted at Bitcoin's potential for further growth: “Trend Precognition indicates that this rally may not be over yet.” The account emphasized that while $40,000 is within focus, Bitcoin’s trajectory this week holds no certainties. However, Material Indicators warned that dipping below $35,375 could nullify the current positive signals.
Bitcoin ETFs in Regulatory Limbo
Speculation suggests that Bitcoin's recent price surge might be linked to reports of the SEC postponing decisions regarding several crypto ETF applications, including those from VanEck, Valkyrie, and WisdomTree. The delay in approving the first Bitcoin spot ETF in the U.S. continues due to concerns about market manipulation, fraudulent activities, and safeguarding ETF users.
Market Indicators Favor Bitcoin
Bitcoin’s price isn't the only indicator signaling positivity. Coinglass data reveals a bullish trend in Bitcoin’s funding rate despite price fluctuations. Additionally, Bitcoin's open interest has soared to $16.7 billion, an unprecedented high since June 2022. Moreover, the percentage of calls (buys) on Bitcoin options open interest remains notably optimistic.
Conclusion: The $40,000 Threshold
In summary, experts suggest that only a plunge below $35,375 could derail the anticipated climb towards the $40,000 milestone for Bitcoin.
Disclaimer: Voice of Crypto endeavors to present accurate and current information. However, it bears no responsibility for omissions or inaccuracies. Cryptocurrencies are inherently volatile; hence, independent research is advised for making financial decisions.
