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Bitcoin Price Forecast: BTC’s Impressive Surge and the $1.32T Global Crypto Cap
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Bitcoin's surge past $34,000 signals a bullish momentum, bolstered by ETF prospects and a $1.32 trillion market cap.
In this article:
Key Insights
- Bitcoin (BTC) surges past $34,000, driving a $1.32 trillion global crypto market cap.
- Bitcoin’s dominance is remarkable: holding over 53% of the total cryptocurrency market cap.
- Current sentiments lean towards “Greed” with the Crypto Fear & Greed Index at 71.
- BlackRock’s spot Bitcoin ETF listing on DTCC sparks market optimism and price surge.
- Grayscale’s legal victory against the US SEC adds fuel to the bullish momentum.
Quick Fundamental Outlook
Bitcoin (BTC), the world’s leading cryptocurrency, extended its upward trend, crossing the $34,000 threshold yesterday. As of now, the global cryptocurrency market cap stands at a whopping $1.32 trillion.
Over the past 24 hours, there has been a change of 1.62%, and when compared to the previous year, the market has grown by an impressive 26.18%.
Bitcoin Market Cap
Bitcoin, often referred to as the ‘King of Cryptocurrencies’, dominates the market with a market cap of $672 Billion. This puts Bitcoin’s market dominance just above 53%, meaning more than half of the total cryptocurrency market cap is held by Bitcoin alone.
This dominance underscores Bitcoin’s influence and its pivotal role in the cryptocurrency ecosystem.
This rising market cap, coupled with Bitcoin’s dominance, signals potential further growth and consolidation of BTC’s position in the market, especially if the anticipated ETF gets approved.
Crypto Fear & Greed Index
The Crypto Fear & Greed Index, a widely referenced metric to discern the emotional pulse of the market, has been reflecting varied sentiments lately. At present, the index is pegged at 71, denoting a “Greed” sentiment.
Interestingly, this is a slight dip from yesterday’s reading of 72, which also indicated a “Greed” sentiment.
A retrospective glance reveals a more moderated sentiment with a “Neutral” score of 52 just a week ago. Diving further back, the sentiment leaned towards caution, with the index marking “Fear” at 46 in the previous month.
Bitcoin Fundamental Outlook
Bitcoin’s price soared past the $35,000 level after the BlackRock spot Bitcoin ETF, with the ticker IBTC, was listed on the US Depository Trust & Clearing Corporation’s (DTCC) website.
In addition to this, the bullish upturn can also be attributed to Grayscale’s recent legal victory against the US SEC. The D.C. Circuit Court of Appeals has instructed the SEC to review its previous rejection of Grayscale’s spot Bitcoin ETF application.
These developments have bolstered optimism among market participants, leading to heightened expectations for the approval of Bitcoin spot ETF applications in the near future.
Investors are growing increasingly optimistic, largely fueled by the potential approval of a Bitcoin ETF, and the total trading volume has once again exceeded $80 billion.
Bitcoin Price Prediction
Bitcoin (BTC/USD) is experiencing a modest pullback, with its price currently at $34,004, marking a decline of 1.50% over the last 24 hours on the 4-hour chart. The pivot point holds steady at $33,894, serving as a key metric for traders. Immediate resistance looms at $35,252, marked distinctly by the double top pattern. Beyond this, the next resistance levels are set at $36,099 and $36,977.
On the downside, Bitcoin has immediate support at $33,126, corresponding to the 38.2% Fibonacci retracement level. Subsequent supports are spotted at $32,423 and $31,800, reflecting the 50% and 61.8% Fibonacci levels, respectively.
The Relative Strength Index (RSI) stands at 70, suggesting the asset is verging on overbought territory. This could indicate a potential market correction, but it also highlights the prevailing bullish sentiment.
The 50-day Exponential Moving Average (EMA) sits at $31,608. With Bitcoin trading above this level, it signifies a short-term bullish momentum.
From a chartist’s perspective, the presence of the Double Top Pattern indicates potential resistance at $35,252. Should the price breach this barrier, it could signal a bullish continuation. However, the bearish undertone cannot be ignored if Bitcoin remains below this level.
Conclusion: The overall trend for Bitcoin appears bearish below the $35,250 mark due to the evident double top pattern. Yet, surpassing this level could shift the momentum to bullish.
In the short term, Bitcoin may test the $36,099 resistance if the bullish sentiment persists.
About the Author
Arslan Aliauthor
Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.
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