The price of bitcoin has risen to over $45,900 in the last few hours, an increase of 7.5% in the last 24 hours. These are the three main reasons:
#1 massive CME offering
The recent rise in bitcoin price was primarily led by activities on the Chicago Mercantile Exchange (CME). At one point, the price of bitcoin on CME was approximately $1,400 higher than on Coinbase, indicating significant buying pressure on this platform.
The CME Group, a renowned exchange for cash-settled bitcoin futures contracts, attracts a significant institutional investor base, making its price movements particularly notable. Analyst Will Clemente highlighted the unusual trading activity, stating via
Supporting this observation, analyst @MacnBTC commented, “Obviously something is leaking out, as CME is up +8.5% on the day.” Bluntz Capital echoed similar sentiments, noting, “CME trading apes are mimicking a huge premium.”
CME Trading Apes Are Copying, Huge Bonus pic.twitter.com/dwfW0shLB7
– Bluntz (@Bluntz_Capital) January 2, 2024
#2 bitcoin ETF Approval Rumors
The approaching January 10 deadline for the U.S. Securities and Exchange Commission's (SEC) decision on approving a spot bitcoin exchange-traded fund (ETF) has sparked significant anticipation in the market. As a bitcoinist bitcoin-etf-deadline-sec-paperwork/” target=”_blank” rel=”nofollow”>reported Today, the SEC is reportedly doing the final paperwork.
Additionally, rumors intensified yesterday that the SEC could approve a batch of spot bitcoin ETFs today, January 2nd. A Reuters report indicated that the SEC could potentially inform issuers as early as today, Tuesday or Wednesday, about its authorization to introduce cash. bitcoin ETF in the next week. This speculation may have caused a feeling of FOMO (Fear of Missing Out) among investors.
However, this is by no means a done deal. Eleanor Terrett of FOX Business shared ideas about X, commenting on the unpredictability of the SEC. Terrett noted: “While the SEC is surely unpredictable, I would be surprised if approvals happen (today). (…) The SEC still has to review all the changes made to the S-1s filed on Thursday/Friday AND comment on them.”
#3 Solid Techniques on Multiple Time Frames
On the technical front, bitcoin showed strong bullish signals on various time frames. Renowned crypto analyst Skew focused on the 30-minute chart of btc/USDT. In a post on X, Skew shared an accompanying chart and analyzed:
btc 30min: Systematically this has been super clean. Price tested 4H 200MA and 200EMA and then polished with 4H 200MA before recovering 1H 200MA and 200EMA (impulse on). Technical turn of the previous resistance to run towards the highs. Now we see how much momentum is building behind this.
On the daily chart, btc bounced off the lower end of the uptrend channel and is now trying to break above the overhead resistance. Once again, btc has honored the trend that began in mid-October and is now initiating another breakout attempt. A daily close above $45,500 could be decisive. Then, the 0.618 Fibonacci retracement level at $48,700 could be the next target. At the time of this publication, btc stood at $45,693.
Featured image created with DALL·E 3, chart from TradingView.com
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