By Bitcoin, the leading cryptocurrency, surged on Friday, reaching fresh highs not seen in 19 months as it attempts to maintain a strong position above a crucial price level.
Bitcoin Price Surge
Over the past 24 hours, the price of Bitcoin rose by 2% to $38,600, briefly surpassing the $38,800 threshold. This marks the highest point for Bitcoin since the cryptocurrency market experienced a severe and prolonged bearish period in April 2022. Interestingly, Bitcoin has recently rallied by over a third since mid-October, breaking free from months of lackluster crypto trading. This impressive surge has sparked speculation about the emergence of a new bull market.
Buying Strength and Bullish Outlook
Markus Levin, co-founder of the blockchain network XYO, believes that the absence of significant retracements following these recent Bitcoin rallies signifies a substantial influx of buyers compared to just a few months ago. Levin states, “It’s reminiscent of a bull market, and it does seem as if we are in the early stages of a bull market. Barring a lot of bad news, I doubt a pullback below $35,000 is likely.”
Consolidating Above ,000: The Real Challenge
While Bitcoin’s current position around $35,000 appears stable, the true test lies in consolidating above $38,000. Despite breaching this level multiple times in recent weeks, Bitcoin has struggled to sustain gains above $38,000. Typically, selling pressure pushes prices down within a few days.
Optimism Surrounding Regulator Approval and Interest Rate Trends
Cryptocurrencies continue to benefit from optimism surrounding the potential approval of the first spot Bitcoin exchange-traded fund (ETF) by U.S. regulators. This approval is expected to generate significant investor interest. Additionally, the expectation of decreasing interest rates in early 2024—a macro trend that has bolstered the Dow Jones Industrial Average and S&P 500 in the stock market—has contributed to the positive momentum of cryptocurrencies.
Ether and Altcoin Performance
Meanwhile, Ether, the second-largest cryptocurrency by market capitalization, experienced a 2.5% increase and reached nearly $2,100. Smaller altcoins, such as Cardano and Polygon, saw more modest gains, with the former rising by 1% and the latter staying relatively flat. In the memecoin category, Dogecoin showed a 3% advance, while Shiba Inu recorded a 1% increase.
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