In a dramatic twist, just 48 hours after the United States submitted a hefty $4.3 billion settlement with major crypto market player Binance, the Bitcoin price defied expectations by catapulting to a new peak for the year.
Breaking the $38,000 barrier in the early stages of the New York trading session on Friday, the cryptocurrency sector witnessed the much-awaited surge. Bitcoin’s recent consolidation within a pennant pattern had hinted at the prospect of a bullish rebound, and it appears these predictions have come true.
Bitcoin Price Hits Highest Peak Since 2022
Bitcoin’s rally also took place after the Thanksgiving holiday in the US, marking its highest point since May 2022. This rise occurred despite subdued activity in conventional markets. Although the top coin has seen a slight pullback, it is still up 1.5% for the day.
Traders are incredibly excited about Friday’s rise in Bitcoin’s price, which has reignited the feeling of fear of missing out (FOMO). Due to this spike, Bitcoin could potentially reach the next major resistance level, which is located at around $42,000, in the coming weeks.
Still so far, things are going so well #Bitcoin.
Slowly rising to a new resistance point and a break above $38K immediately means that $40K is next. pic.twitter.com/3ZUkS72I6g
— Michaël van de Poppe (@CryptoMichNL) November 24, 2023
Some market watchers are optimistic about the short-term trajectory, with trader Michael Van Pope suggesting in a tweet that Bitcoin’s next milestone is at $40,000.
The US Department of Justice and Binance have reached an agreement, which is undoubtedly the most important development of the month. Changpeng Zhao was forced to resign as CEO of the company and the exchange was forced to pay a penalty totaling approximately $4.3 billion. Binance, the world’s largest cryptocurrency exchange, has appointed Richard Teng as its new CEO.
Bitcoin poised to reclaim the $38K territory today. Chart: TradingView.com
Bitcoin circulates supply in profit region
A recent one upturn in market liquidations is another important component that affects the Bitcoin price. Liquidations of long and short positions have increased significantly over different time frames, with a total of $80.29 million in liquidations in the last 24 hours, according to statistics from Coinglass.
Source: Coinglass
In a related development, during last week’s gains, the share of Bitcoin’s circulating supply currently making gains reached 84%, or 16.36 million BTC. Additionally, Glassnode noted that this is historically notable as it is significantly higher than the all-time average of 74%.
Of #Bitcoin Last week it traded at a yearly high above $37,000, pushing more than 83% of the coin supply back into profitable territory.
However, the size of the unrealized profit remains modest and is not yet sufficient for long-term investors to divest.https://t.co/IGJpglF20J
— glassnode (@glassnode) November 22, 2023
Meanwhile, the positive outlook is further fueled by heightened anticipation surrounding the potential approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission. With a January 10 deadline looming, the SEC is tasked with evaluating numerous pending applications for these ETFs.
If given the green light, these ETFs are poised to provide investors with a more cost-effective way to tap into the Bitcoin market, adding a new layer of optimism to the current bullish sentiment.
(The content of this site should not be construed as investment advice. Investing involves risks. When you invest, your capital is subject to risk).
Featured image from Freepik
