Bitcoin has been one of the best-performing cryptocurrencies on the market on all timeframes.
After spending the whole of November consolidating under the $38,000 resistance and riding waves of "$40,000 BTC" speculation, Bitcoin has now broken through and has a bright future ahead.
However, there is a slight problem.
Nearly every analyst on Twitter and the rest of the market had $40,000 predictions for the flagship cryptocurrency (which is about to happen, by the way).
The above snapshot is what Bitcoin looks like according to Coingecko.
So what now? What next after Bitcoin hits $40,000? A longer rally to $45,000? A price decline to $35,000?
Stick around, and let's see what might happen with Bitcoin next.
Let's get ourselves up to speed.
Bitcoin according to Coingecko, is up by 1.7% over the last day, by 4.5% over the last week, 14.6% throughout November, and by a whopping 133% since the start of the year.
According to data from CoinMarketCap, Bitcoin's dominance has been gaining as of late, and now sits at about 52%.
This means that the price of Bitcoin is strengthening against the altcoins and that Bitcoin's bullish prospects are very much active.
In terms of the "$45,000 Bitcoin at the end of the year" predictions, however, Bitcoin may just be on its way to a massive rally.
Let's go over a few metrics.
According to data from Coinglass, Bitcoin's open interest has been on the rise.
This metric shows that Open Interest in Bitcoin now sits at an $18.18 billion high, last seen in April 2022!
This interesting surge is also reflected by Bitcoin's daily volumes.
The daily amounts of liquidity being poured into Bitcoin have also been on the rise as of late, overshadowing the rest of the year and sitting at its highest point since April 2022.
As shown by the chart above, today's trading volumes have topped out at $18.24 billion over the last 24 hours.
You might want to look at this next part though.
There appears to be some profit taking on the investors' part, as shown by the long/short ratio.
This is possibly because Bitcoin newly crossed over the $39,000 zone.
The bears appear to have a slight edge over the bulls, with a long/short ratio of 0.98 and a 50.4% share of overall trades.
Bitcoin's break above $38,000 is clearly visible in the chart below:
The cryptocurrency currently trades at around $39,455 and is now very close to retesting $40,000.
The daily RSI as shown in the chart above, is also showing signs of a bullish crossover between the MACD and the signal line.
This makes it very probable that Bitcoin will continue to advance further.
The only issue is that the $40,000 zone is one of the strongest psychological resistances under $60,000. Take a look at this:
The above is Binance's depth chart. As shown above, there is a huge order block around $40,000. This indicates that several investors (some 660+ of them) have set take-profits around this zone
There is bound to be some profit taking on Bitcoin as soon as it hits $40,000, and being alert may help.
Speculation continues to mount about Bitcoin's ability to hit the $40,000 mark. Let's go over some analyst opinions on the matter.
In a YouTube video released this weekend, Michael van de Poppe, a renowned analyst and founder of MN Trading, shared his insights with his 161k subscribers.
Van de Poppe opined that Bitcoin has successfully established support somewhere around the $31,000 level after breaking above in October.
This support zone has been one of the strongest psychological supports on Bitcoin's chart since 2021 and may be the final stop for the cryptocurrency in a worst-case scenario.
Van de Poppe also noted that considering how some Bitcoin ETFs may be approved in January 2024, if this correction to $31,000 is going to happen, it will likely be a "liquidity trap".
In terms of price predictions, van de Poppe notes that Bitcoin will likely continue to advance, and will stop somewhere around $41,000 as shown below:
From this point, we may witness a price decline back under $38,000 again, a retest of this zone, before a drop to $32,500 – $33,000 as illustrated above.
Conversely, if Bitcoin doesn't top out at $41,000, we can then see a rally towards $45,000.
In summary, the price targets for Bitcoin are as follows
Bullish Projections:
Bearish Projections:
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.