Bitcoin Price Prediction as It Breaks $38,000 Again – Will $40,000 Be the Next Milestone?

Arslan Butt
Last updated: | 3 min read

Bitcoin Recap

Bitcoin (BTC), the leading cryptocurrency, has once again surged past the $38,100 threshold, reflecting renewed market confidence amid global economic shifts. This rally may be partially attributed to the Federal Reserve’s Waller’s optimistic statements, which have injected a fresh wave of enthusiasm into the cryptocurrency market.

Simultaneously, leadership changes at Binance are being closely observed by investors, gauging their potential impact on the market’s trajectory.

Furthermore, Standard Chartered’s ambitious forecast, envisioning Bitcoin’s climb to $100,000 by late 2024, is bolstering investor sentiment. This projection comes at a time when central bank policies are increasingly influential on digital asset values.

Adding to this bullish momentum is the significant inflow of institutional investments into cryptocurrencies, particularly Bitcoin, highlighting a growing trust in BTC’s market stability and potential for long-term growth.

Spot Bitcoin ETFs and SEC Delay: Boosting BTC Price and Investor Morale

It’s noteworthy that the Securities and Exchange Commission (SEC) recently postponed decisions on two Spot Bitcoin Exchange-Traded Funds (ETFs) by Templeton and Hashdex. The SEC has expressed concerns about potential fraud and manipulation, prompting a call for public input on surveillance agreements.

Surprisingly, Bitcoin surged above $38,000 despite this delay, indicating strong investor confidence in the likelihood of imminent approval. Institutional money is steadily flowing into the market, as evidenced by the largest weekly inflow since late 2021.

Despite the SEC’s delay in approving Spot Bitcoin ETFs, Bitcoin’s price surged above $38,000, indicating strong investor confidence. The market’s resilience suggests optimism for imminent approval and potential positive developments in early January 2024.

BTC Price Reacts to Weakening US Dollar and Federal Reserve Shifts

Another factor contributing to the support of the BTC price has been the weakening US dollar. Despite efforts to reverse its downward trend, the broad-based US dollar continues to hover at its lowest point in over three months. This trend is attributed to growing anticipation of multiple interest rate cuts by the Federal Reserve in 2024, which enhances the attractiveness of BTC.

Fed Governor Christopher Waller has hinted at the possibility of future rate cuts if inflation shows signs of easing in the coming months. He has expressed confidence in the current policy framework, which aims to stabilize the economy and achieve the 2% inflation target.

However, Fed Governor Michelle Bowman presents a contrasting perspective, emphasizing the potential necessity for additional rate hikes to address persistent inflation.

Consequently, news of potential interest rate cuts by the Federal Reserve in 2024, combined with contrasting views from Fed Governors, has created uncertainty. This uncertainty could significantly impact the BTC price by influencing investor perceptions and decisions in response to the evolving economic conditions and central bank policies.

Bitcoin Price Prediction

Bitcoin demonstrates a subtle uptick to $37,796 within a 4-hour bullish channel, suggesting a positive sentiment. The pivot point stands at $37,975 with subsequent resistances at $38,610, $39,250, and $39,800. Support forms at $36,935, with further cushions at $36,375 and $35,740.

Bitcoin Price Chart
Bitcoin Price Chart – Source: Tradingview

The RSI at 58 hints at a mild bullish bias, not yet overbought. An ascending triangle pattern indicates potential for an upward breakout. Overall, the trend is bullish, with expectations that Bitcoin may soon test the resistance at $38,610.

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