The Bitcoin (BTC) price is pulling back aggressively after once again rejecting resistance at the $38,000 level earlier on Thursday.
BTC was last changing hands in the $36,300s, down more than 4% on the day, but still well within this week’s $35,000-$38,000 ranges.
Bitcoin’s failure to break higher comes after the SEC delayed its decision on an application from Hashdex to convert its Bitcoin futures exchange-traded fund (ETF) into a spot Bitcoin ETF.
Some traders had perhaps been hoping the SEC might have given this application and a batch of other spot Bitcoin ETF applications, such as from the likes of BlackRock and Ark Invest, the green light this week, hence the intra-day selling.
But most analysts would agree that the SEC looks odds on to approve a batch of spot Bitcoin ETFs by early 2024, so optimism about an influx of capital inflows into the Bitcoin market in 2024 is likely to continue supporting prices for the foreseeable future.
Price Prediction – Time to Buy the Dip?
With Bitcoin having backed off now nearly 5% from its annual highs near $38,000, investors will be asking whether now is a good time to buy the dip.
Fundamental analysis suggests it could be.
As already noted, despite Thursday’s SEC delay, optimism is set to remain high that spot Bitcoin ETFs will soon gain approval in the US.
Moreover, macro is acting as a major tailwind for crypto this week, with US stocks pumping and the US dollar and US yields pulling aggressively lower.
Those moves in traditional assets come as macro investors ramp up bets that a US Federal Reserve cutting cycle is coming in 2024 in wake of weaker-than-expected US inflation data for October, which came on the heels of soft US jobs and manufacturing data released earlier in the month.
Dovish policy pivots from the Fed (i.e. a switch from rate hikes to rates cuts) have in recent years generally been very bullish for Bitcoin.
Chart analysis is also bullish.
Bitcoin appears to have formed a bullish ascending triangle structure in the last few weeks, which tend to form ahead of bullish breakouts.
A substantial break to the north of $38,000 should open the door to a swift test of the psychologically important $40,000 level.
If a Santa Rally really gets going, traders shouldn’t rule out that Bitcoin could even rally back to its 2022 highs at $48,000 before the end of the year.
Bitcoin ETF Token ($BTCETF)
Bitcoin’s medium-term outlook is strong, but the market remains at risk of short-term pullbacks.
A better alternative for those hunting for quick short-term gains might be a newly launched token called Bitcoin ETF Token, which is designed to reward token holders every time new developments occur in the Bitcoin ETF approval saga.
Despite only launching its presale a few days ago, Bitcoin ETF Token has already been able to pull in over $880,000 from investors because of its audacious pitch into the lucrative Bitcoin ETF theme that underpins the current crypto rally.
$BTCETF is also garnering attention because of its DeFi attributes.
$BTCETF tokens can be bought in presale today and staked to earn an annual percentage yield currently sitting at 487%, as per the project’s official staking dashboard.
The post Bitcoin Price Prediction as BTC Gets Rejected From $38,000 Level – Time to Buy the Dip? appeared first on Cryptonews.
