Bitcoin price exploded past resistance at $38,000 on December 1, accentuating the bullish outlook in the digital asset. With this successful retest, traders are likely to find BTC attractive, especially now that optimism is on the overdrive regarding the possibility of the Securities Exchange Commission (SEC) approving the first spot Bitcoin exchange-traded funds (ETFs) in the US.
The largest cryptocurrency is on a trajectory to blast through resistance in the range between $39,000 and $40,000 as part of a bullish thesis for gains to $45,000 before the end of the year.
Bitcoin trades at $38,860 up 3.2% in the last 24 hours not to mention a 7.8% increase in a fortnight and 13.5% in 30 days, market data from CoinGecko reveals.
Bitcoin Price Prediction Ahead of Spot ETF Approval
Bitcoin flaunts a bullish technical structure on the four-hour chart, sitting above the resistance-turned-support zone between $38,000 and $38,500. A daily close above this area could be enough to convince traders of the uptrend likelihood to reach $50,000 by December 31.
The crypto community has its eyes set on the SEC to greenlight the coveted BTC spot ETFs. According to Bloomberg’s analyst James Seyffart, the agency has a narrow window between January 5 and 10 to decide whether to approve or reject the proposals.
Window is officially Jan 5th to Jan 10th. Really this means that any potential approval orders are going to come on either Monday Jan 8, Tuesday Jan 9, or Wednesday Jan 10. Mark your calendars people. https://t.co/8ob8Y6pgU5
— James Seyffart (@JSeyff) December 1, 2023
There are at least a dozen Bitcoin spot ETF proposals with the SEC expected to approve a bunch of the products to ensure not one of them gets an unfair advantage or head start.
Investors, especially institutional are focused on seeking as much exposure to Bitcoin as possible before the approval window approaches. Michael Saylor, the chairman and founder of MicroStrategy, the largest single holder of BTC reported via X on Thursday that his company grew its balance sheet with an additional 16,130 BTC in November bought an average of $593 million.
MicroStrategy now holds 174,530 BTC purchased for approximately $5.28 billion at an average price of $30,000 BTC.
MicroStrategy has acquired an additional 16,130 BTC for ~$593.3 million at an average price of $36,785 per #bitcoin. As of 11/29/23, @MicroStrategy now hodls 174,530 $BTC acquired for ~$5.28 billion at an average price of $30,252 per bitcoin. $MSTR https://t.co/hSEZyzGBsr
— Michael Saylor
(@saylor) November 30, 2023
The increase in investor risk appetite toward Bitcoin is a bullish signal which coupled with the likely approval of a bunch of BTC spot ETFs could significantly boost the rally in December.
Recommended for you: The SEC’s Window To Approve Bitcoin Spot ETF Is Narrowing, Bloomberg Analyst
Popular analysts and traders like Doctor Profit on X concur that the time is ripe for a Bitcoin price rally, as long as support between $38,000 and $38,500 holds. A daily close above this region may propel BTC to highs between $42,000 and $42,000.
#Bitcoin exploding above $38.500 and leaving the 30 days range between MA20 and 38.5k. Daily close above this level and we can expect 40-42k soon
The hedge shorts are closed at entry with no loss and no profit, but spot bags fully exploding, that’s the plan
Profit on both sides pic.twitter.com/GCbFn2NIsf
— Doctor Profit
(@DrProfitCrypto) December 1, 2023
The Moving Average Convergence Divergence (MACD) indicator reinforces the bullish outlook, sending a buying signal. Traders may have noticed the MACD line in blue crossing above the signal line in red.
Bitcoin price will uphold the bullish thesis for as long as the MACD is moving higher above the neutral zone, In case of another dip below $38,000 support provided by the 50 Exponential Moving Average (EMA) at $37,686 will come in handy. Although unlikely at the moment, declines below this price point would seek refuge at the ascending dotted trendline, the 100 EMA (blue), the falling main trendline, or even the 200 EMA (blue) at $35,973.
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The post Bitcoin Price With Spot ETF Approval On The Horizon, Can BTC Rally Extend To $50k In December? appeared first on CoinGape.
from CoinGape