By Bitcoin and other cryptocurrencies experienced a slight setback on Thursday, as they paused their recent rally. Despite this, analysts and traders maintain a positive outlook.
The price of Bitcoin dropped by 1% in the past 24 hours, falling below $37,700. This retreat came after the cryptocurrency briefly surpassed $38,000 earlier in the week. For Bitcoin, this price level represents the highest point since the market crash 19 months ago. Since mid-October, Bitcoin has seen a remarkable surge of over one-third in value, breaking free from a period of subdued trading and reigniting discussions about a potential bull market.
According to Alex Kuptsikevich, an analyst at broker FxPro, the current price action indicates a temporary pullback within a broader upward trend that started in mid-October but has slowed down recently.
Cryptocurrency Gains Rebound on Optimism of Bitcoin ETF Approval
Cryptocurrencies have experienced a surge in value, largely driven by the anticipation of U.S. regulators approving the first spot Bitcoin exchange-traded fund (ETF). This development is expected to generate a fresh wave of investor interest in digital assets. In addition, Bitcoin has benefited from an improved macroeconomic backdrop, as market participants anticipate multiple interest rate cuts by the Federal Reserve next year. This positive trend has also bolstered the Dow Jones Industrial Average and S&P 500.
Despite the recent success Bitcoin has enjoyed, it still faces a significant challenge at the $38,000 price zone. Although the cryptocurrency has surpassed this level multiple times in recent weeks, it has struggled to maintain stability above that point.
According to Kuptsikevich, an industry expert, “The market has demonstrated that it is not yet ready for rapid acceleration, but it also hasn’t found any reason to decline significantly. Only a failure below $36,700 will confirm that $38,000 is a solid horizontal resistance. Without this confirmation, the prevailing scenario remains within the upward range.”
Cryptocurrency Market Update
Bitcoin and Ether Show Slight Movements
In the world of cryptocurrencies, Bitcoin experienced a minor decline of 1%, currently priced at $38,800. Ether, the second-largest cryptocurrency, also showed a slight decrease of 1%, with its value now standing at $2,030.
Altcoins Demonstrate Mixed Performance
When it comes to smaller tokens or altcoins, the market witnessed varying movements. Cardano recorded a 2% decrease, while Polygon saw a 2% increase in its value.
Memecoins Display Divergent Trends
Among memecoins, Dogecoin saw a 2% rise in its value, while Shiba Inu experienced a minor decline of 1%.
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