Bitcoin (BTC) price rally is back on track after taking a brief breather on Tuesday. The largest cryptocurrency hit a new milestone this week with highs slightly above $35,000 for the first time in 2023 and with support at $33,000, traders have been persistently booking new positions anticipating another breakout above $35,000.
Bitcoin Price Uptrend Back On Track
Blockchain data from Santiment reveals that traders are showing signs of euphoria and this is majorly driven by optimism regarding the potential approval of a Bitcoin spot exchange-traded fund (ETF) in the US.
As FOMO spreads across the market, accumulation is expected to increase. Bitcoin is up 28% since the beginning of October and 33% in the last 30 days to $34,802 according to market data by CoinGecko.
🤑 Traders are euphoric and showing major signs of #FOMO. $BTC‘s now +19% 1-week rise, and surging market caps have registered a high level of greed keywords. For more rising, trader #FUD is necessary. Markets historically rise when traders least suspect. https://t.co/Ojpa7qy8a9 pic.twitter.com/eWLUbOqL59
— Santiment (@santimentfeed) October 24, 2023
A successful retest of the resistance at $35,000 could serve as confirmation for gains to $40,000 — a move that might mark the beginning of a pre-halving rally.
Two factors are expected to contribute to the next bull run: The approval of a BTC spot ETF and the halving event in April 2023. Optimism is already building for the ETF, with BlackRock likely to spearhead this new era.
Like other halving events, the next halving will slash miner rewards, thus reducing the supply of BTC, and with demand rising, Bitcoin price is expected to rally to achieve a new all-time high.
According to James V. Straten, a research and data analyst, investors are eagerly accumulating BTC as they book positions ahead of the bull market. Over the last 30 days, holders across the board “have absorbed 103,000 Bitcoin…, including miners and exchanges,” Straten said via X (Twitter).
Currently, 27,000 #Bitcoin go onto exchanges per month.
In total, all cohorts have absorbed 103,000 #Bitcoin in the last 30 days, including miners and exchanges.
Extreme accumulation at the momenthttps://t.co/zM7cMb9MsS
— James V. Straten (@jimmyvs24) October 25, 2023
Bitcoin Price Prediction: The Journey To $40k Begins
After pushing above several bull market indicators the next test for Bitcoin’s rally is the resistance at $35,000 which bulls seem poised to defeat based on the persistent uptrend in the Relative Strength Index (RSI) despite the overbought conditions.
Two back-to-back golden cross patterns reinforce the bullish outlook in the price of Bitcoin. The first pattern occurred with the 21-day Exponential Moving Average (EMA) crossing above the 100-day EMA.
A subsequent flip above the 200-day EMA completed the second golden cross, thus strengthening the uptrend.
Currently, traders are waiting with bated breaths as Bitcoin price makes a second move against resistance at $35,000 this week. Trading above this immediate hurdle will call for more buy orders with attributes to FOMO. Bitcoin can close the week above $38,000 which will also bring the psychological $40,000 resistance within reach.
If a correction takes place, investors would be ready to buy Bitcoin as it retests support at $31,500. Such a dip would offer opportunities to buy more BTC, especially for people already feeling sidelined by the ongoing rally. Declines below $30,000 are starting to seem impossible, especially with discussions around a BTC spot ETF surging and encouraging FOMO.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.