Recently, BTC was trading at $38,326.
Bitcoin price has risen above $38,000 in the past few hours and for the first time this year, it closed a 4-hour candle above this crucial price level, a very bullish sign that BTC could rise further. Below are the reasons behind the latest BTC price surge.
Anticipation of Bitcoin Spot ETF Approval
The recent rally in Bitcoin price can likely be attributed in part to developments surrounding the possible approval of a Bitcoin spot ETF. James Seyffart, ETF analyst at Bloomberg stated that “Okay, the window for potential Bitcoin ETF spot approval appears to be between January 5 and 10, 2024.”
ETF Store’s Nate Geraci provided more optimism with his comments yesterday, “Another meeting yesterday between Grayscale and SEC. Absolutely fascinated to see how this all plays out, especially the timing of the GBTC listing compared to the launch of competing BTC spot ETFs. By the way, if you’re tired of me tweeting about this, the good news is that I think we’re getting closer to the finish line.”
These developments suggest that a spot Bitcoin ETF is just a matter of when, not if, it will happen. They also show a growing consensus between ETF applicants and the SEC, which just wants to fine-tune all proposals before approving one batch or all 12 applicants (plus Pando Asset) at once.
MicroStrategy Will Buy More BTC
Another driving force could be MicroStrategy’s unwavering commitment to Bitcoin. The company’s latest filing revealed an additional purchase of 16,130 BTC, for an approximate amount of $608 million. This acquisition, at an average price of around $36,785 per Bitcoin, brings MicroStrategy’s total holdings to 174,530 BTC.
However, what was even more important was the news that MicroStrategy is already planning its next Bitcoin purchases. The company has reached an agreement to offer up to $750 million in Class A common stock, a move interpreted by many as preparation for future Bitcoin purchases.
This means that Saylor will buy even more BTC in the coming weeks or months, which will definitely have a positive impact on the BTC price. The news is definitely bullish for the price, although some traders may want to anticipate it.
Market Dynamics
The current market dynamics surrounding the rise in Bitcoin price have been closely analyzed by leading crypto analysts, revealing nuanced insights into the behavior of market participants. Crypto analyst Skew highlighted a specific pattern in buying behavior, which indicates a strategic approach by market players.
Byzantine General, another crypto analyst, found another major driver of the recent price action. He stated, “Spot markets are still trading at a premium, not just Coinbase. And the fact that the USD markets are consistently trading much higher than the USDT markets makes me think that maybe new money is coming in.”
Breakout Movement on Shorter Time Frames
Crypto expert Scott Melker observed a breakout move on the lower time frames. He noted that “Bitcoin broke out in a down period of time. On the 15-minute chart, Bitcoin has been trading within a descending channel, a pattern marked by sequential lower highs and lower lows. This usually reflects a bearish trend.”
However, a few hours ago, the Bitcoin price managed to break above the upper boundary of this channel. The breakout of the low time frame is important for traders because it sets the stage for a continued upward trajectory on higher time frames.
By Audy Castaneda
