Do you have investments in Bitcoin?
If so, you might be feeling overwhelmed if you bought at lower levels. Perhaps you also spotted and purchased some last month when it was consolidating for a shorter period, allowing you to enjoy the Bitcoin rally.
A solid surge
On Tuesday, Bitcoin achieved a significant milestone once again, surpassing USD 44,000 for the first time since April 2022. Currently, Bitcoin has surged over 15% this month, and only five days have passed since the beginning of the month.
In the year 2022, particularly in April, it was trading around USD 44,000 levels before breaking from its previous swing of around USD 37,700 levels in May 2022. Subsequently, it experienced a sluggish period, dropping over 64% and hitting a low of around 15,479 in November 2022. This level served as a support area, or more precisely, these levels previously acted as resistance during 2017 and 2019. This time, however, it served as a support zone, creating a demand area for buyers. Interestingly, buyers reacted to this zone, causing Bitcoin to reverse its course and move upwards.
In November, Bitcoin was consolidating and encountered resistance around the USD 37,700 level. However, in December, it managed to break through this hurdle, reaching a significant milestone of USD 44,000 levels.
As of writing this article, it is trading at USD 43,838 levels. If someone had bought it at USD 15,500, it would have resulted in an impressive return of 182% based on current levels, achieved in just one year or 380 days.
The question that may arise in your mind is probably, what is the reason behind this surge? Well, the positive sentiment regarding the possibility of a spot Bitcoin ETF gaining approval in the US has been the primary driver behind Bitcoin’s upward trajectory. Initially modest, the momentum gained steam as news surfaced of potential bitcoin ETF providers engaging with the US Securities and Exchange Commission, actively receiving, and incorporating feedback on their ETF proposals, intensifying investor confidence.
The prevailing agreement suggests that a bitcoin ETF will likely receive approval early in 2024, owing to the SEC’s set deadlines for responses, aligned with the filing dates of issuers’ applications.
Additionally, the resolution reached between Binance and the US Department of Justice in late November was widely perceived as a significant obstacle to overcome in the ongoing efforts to clean up the cryptocurrency industry after the FTX incident. Investors are also anticipating the Bitcoin halving, anticipated to occur in 2024.
Know more: Binance’s Downfall
Bitcoin Chart (Weekly Time Frame):
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.