As Bitcoin sets its sights on $38K after an impressive breakout, all eyes are on its momentum amidst lingering macro risks.
Bitcoin has recently experienced a significant surge, reaching its highest level since May 2022. The catalyst behind this surge is the speculation surrounding a new ETF for Bitcoin based on spot valuation. While there is no official confirmation yet, market optimism is high as the introduction of such funds could potentially ignite a new bullish run.
Another factor contributing to the positive sentiment is the upcoming Bitcoin halving in mid-April. Historically, this event has favored the bulls, and the weeks ahead are expected to be crucial in determining the future trajectory of the cryptocurrency.
However, there is controversy surrounding the BlackRock ETF listing. Although it was initially listed, it was promptly removed, causing a slowdown in demand. Major players like BlackRock, Fidelity, and Invesco are expected to eventually come on board, but any delay in the official launch could lead to a rapid correction. The final decision rests with the U.S. Securities and Exchange Commission (SEC), which has the authority to approve specific funds.
Comparisons have been drawn to the launch of the first gold ETF in 2004, which sparked a multi-year bull market for gold. While it’s important to note that different factors influence the valuation of various investment assets, there are credible perspectives suggesting that the combination of Bitcoin spot ETFs and the upcoming halving event could propel Bitcoin to new all-time highs in 2024.
From a technical standpoint, Bitcoin bulls are eyeing the $38,000 level as their next target. The recent upward momentum has broken through strong resistance at $33,000, and there is currently no sign of sellers willing to make a correction. If the momentum continues, an attack on the $48,000 level could be possible.
It’s essential to approach investments in Bitcoin and other assets with caution and evaluate them from multiple viewpoints. Investing in any asset carries significant risks, and it is important for investors to make informed decisions based on their own risk tolerance and research.
Disclaimer: This article is for informational purposes only and does not constitute a solicitation, offer, advice, or recommendation to invest. Investing in assets is highly risky, and any investment decision and associated risks remain with the investor.