In a dramatic turn, just 48 hours after the United States unveiled a hefty $4.3 billion deal proposal with major cryptocurrency market player Binance, the price of bitcoin defied expectations by catapulting to a new peak for the anus.
Breaking the $38,000 barrier In the early stages of the New York trading session on Friday, the cryptocurrency sector witnessed the long-awaited surge. bitcoin‘s recent consolidation within a pennant pattern had hinted at the prospect of a bullish rally, and it appears those predictions have come to fruition.
bitcoin price hits highest peak since 2022
bitcoin‘s rally also came after the US Thanksgiving holiday, marking its highest point since May 2022. This rise came amid subdued activity in mainstream markets. Although the top coin has seen a slight pullback, it is still up 1.5% on the day.
Traders are incredibly excited by Friday’s bitcoin price surge, which has reignited the feeling of fear of missing out (FOMO). Due to this spike, bitcoin may reach the next major resistance level, which sits around $42,000, in the coming weeks.
Still so far, very good. bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin.
Slowly rising to a new resistance point and a break above $38,000 immediately means $40,000 is next. pic.twitter.com/3ZUkS72I6g
—Michaël van de Poppe (@CryptoMichNL) November 24, 2023
Some market observers are optimistic about its near-term trajectory, with trader Michael Van Pope suggesting in a tweet that the next milestone for bitcoin is set at $40,000.
The US Department of Justice and Binance reached an agreement, which is undoubtedly the most significant development of the month. Changpeng Zhao was forced to resign as CEO of the company and the exchange was forced to pay a penalty totaling around $4.3 billion. Binance, the world’s largest cryptocurrency exchange, has named Richard Teng as its new CEO.
bitcoin poised to reclaim the $38K territory today. Chart: TradingView.com
bitcoin circulating supply in profit region
A recent uptick in market settlements It is another important component that affects the price of bitcoin. Liquidations of long and short positions have increased significantly in different time periods, with a total of $80.29 million in liquidations in the last 24 hours, according to statistics from Coinglass.
Source: Coinglass
In a related development, during last week’s gain, the proportion of bitcoin‘s circulating supply that is currently in profit reached 84%, or 16.36 million btc. Additionally, Glassnode noted that this is historically noteworthy because it is significantly higher than the historical average number of 74%.
With bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin Trading at yearly highs above $37,000 last week, more than 83% of the coin supply returned to profitable territory.
However, the magnitude of unrealized profits remains modest and is not yet enough for long-term investors to unload their investments.https://t.co/IGJpglF20J
– glass node (@glassnode) November 22, 2023
Meanwhile, further fueling the positive outlook is increased anticipation surrounding the potential approval of spot bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission with the imminent deadline of January 10, the SEC is tasked with evaluating numerous pending applications for these ETFs.
If given the green light, these ETFs are set to offer investors a more profitable avenue to access the bitcoin market, adding another layer of optimism to the current bullish sentiment.
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Featured image from Freepik
