Bitcoin surged to $38,544, a height never seen since May 2022.
SEC meets Grayscale and BlackRock; discussions fuel Bitcoin’s upward trajectory.
Bitcoin, the dominant force in the cryptocurrency realm, has ignited fervent conversations within the community during this holiday season. Its recent climb to $38,544 marks a monumental high not witnessed since May 5, 2022, a staggering 18-month gap. The surge follows a turbulent two-day period that saw Bitcoin dip below $35,780 before its remarkable ascent. Presently, it stands at $37,809, boasting a 1% uptick in the last 24 hours.
Moreover, the escalating investor confidence in Bitcoin is evident in the remarkable surge in trading volume, which catapulted by an impressive 67% within the same 24-hour period.
Meanwhile, this surge aligns with pivotal discussions held by the Securities and Exchange Commission (SEC) with key investment managers regarding their applications for a spot Bitcoin exchange-traded fund (ETF). Recent meetings included talks with Grayscale and BlackRock representatives on November 20.
Grayscale sought a rule change for listing the Grayscale Bitcoin Trust and struck an agreement with BNY Mellon as a service provider. Meanwhile, BlackRock detailed potential models for its iShares Bitcoin Trust, outlining in-kind or in-cash redemption possibilities.
Further adding to the momentum, leading crypto data aggregators disclosed that the top 100 largest Tether addresses collectively accumulated $1.67 billion over six months. This substantial increase in whale-level USDT buying power suggests a possible impending surge beyond $40,000 for Bitcoin.
Bitcoin Bull Rally to $40K?
Amidst the flurry of positive indicators, in-depth analysis of Bitcoin’s price trends unveils a nuanced scenario. The daily chart hints at a vulnerable bullish trend, with the 9-day exponential moving average (EMA) currently positioned at $37187, above the trading price.
BTC Price Chart, Source: TradingView
Yet, the daily relative strength index (RSI) portrays a nearly overbought condition, steadying at 62. Looking ahead, projections suggest a prospective rally aiming for the $40,300 mark if BTC manages to breach the crucial $38600 threshold. Conversely, a downturn below the $36,440 level might test the support line at $32,792, painting a contrasting narrative amid the current bullish sentiments.