Home Bitcoin News Bitcoin’s Surge Past $38,000: On-Chain Metrics Point to Bullish Momentum

Bitcoin’s Surge Past $38,000: On-Chain Metrics Point to Bullish Momentum

Bitcoin Rising

Bitcoin, the flagship cryptocurrency, has once again made a powerful move, surging 1.5% and reaching levels above $38,000. This latest bullish momentum has captured the attention of market participants, and several on-chain metrics suggest that the bulls are gaining an upper hand, with their sights set on the crucial $40,000 level and beyond.

Increasing USDT Buying Power: A Bullish Indicator

One notable on-chain metric signaling a bullish trend is the buying power of Tether (USDT), a popular stablecoin pegged to the US dollar. Over the last six months, the 100 largest Tether wallets have accumulated more than $1.67 billion in USDT tokens, indicating a substantial 10% increase in buying power during this period.

The influx of funds into these top Tether addresses is seen as a positive indicator for Bitcoin’s price, as it suggests growing interest and capital allocation from significant players in the market. This increased buying power is seen as a contributing factor to Bitcoin’s recent surge, providing fuel for further upward movement.

Bitcoin Price Hits $38,300: Factors Behind the Surge

According to on-chain data provider Santiment, Bitcoin reached $38,300 for the first time since May 5, 2022. The surge is attributed to various factors, with a notable contribution from the top 100 largest Tether (USDT) addresses. The collective addition of $1.67 billion to these addresses over the past six months is seen as a key driver of the recent bullish momentum in the Bitcoin market.

The optimistic sentiment is further echoed by Greeks.Live, a popular crypto platform, which reports that Bitcoin’s surge past $38,000 coincided with the monthly delivery, establishing a new high for the year. Additionally, the recovery of Dvol, a metric measuring delivery volume, from 51% to its recent average of 54%, indicates positive market dynamics.

Market Optimism and ETF Expectations

Market sentiment is currently highly optimistic, fueled by expectations of the potential approval of a Bitcoin Exchange-Traded Fund (ETF) in the first quarter of the coming year. Skew, a platform providing real-time analytics for Bitcoin and Ethereum, has shown a significant positive bias consistently for over a month, aligning with the broader expectation of ETF approval.

Investors are advised to view any market declines as favorable opportunities to enhance their positions, considering the positive sentiment surrounding the anticipated ETF approval. The approval of a Bitcoin ETF is seen as a significant milestone that could attract institutional investors and further legitimize the cryptocurrency market.

Bitcoin’s Ascending Triangle Pattern: A Technical Analysis

Bitcoin’s price action has formed an ascending triangle pattern on the charts, as highlighted by analysts. This pattern is characterized by a horizontal upper resistance around $37.8K and a rising lower support formed by shallow pullbacks. The ascending triangle is a bullish continuation pattern, and the recent shallowness of declines indicates a growing bullish sentiment in the market.

Alex Kuptsikevich, a senior market analyst at FxPro, anticipates a potential breakout above $40,000, considering the ascending triangle formation. However, the timing of this breakout remains a key question, and market participants are closely monitoring the price action for signs of sustained upward momentum.

Bitcoin’s Resilience and Persistent Demand

Bitcoin’s recent price movements around the $38,000 level have encountered resistance, but the subsequent declines have been brief and minor. This resilience in the face of resistance suggests persistent demand from buyers, particularly during periods of price consolidation.

The ascending triangle pattern and the shallow nature of recent declines further reinforce the narrative of growing bullish sentiment. Investors and traders are closely watching key support and resistance levels, anticipating potential breakouts or breakdowns that could define the short-term trajectory of Bitcoin’s price.

Conclusion: Navigating Bitcoin’s Immediate Future

As Bitcoin makes strong moves, surpassing $38,000, on-chain metrics and technical analysis point to a bullish momentum in the market. The increased buying power of major Tether addresses, positive market sentiment driven by ETF expectations, and the formation of an ascending triangle pattern all contribute to the narrative of a potential upward move.

While Bitcoin faces resistance around the $38,000 mark, the market’s ability to absorb these resistance levels and the shallowness of recent declines indicate underlying strength. Traders and investors are advised to exercise caution and closely monitor key levels for potential entry or exit points.

The question of when Bitcoin will break above $40,000 remains uncertain, and external factors, including macroeconomic conditions and regulatory developments, can influence market dynamics. As the cryptocurrency market continues to evolve, participants navigate the complexities and opportunities presented by this dynamic and rapidly changing landscape.

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MikeT

Mike T, an accomplished crypto journalist, has been captivating audiences with her in-depth analysis and insightful reporting on the ever-evolving blockchain and cryptocurrency landscape. With a keen eye for market trends and a talent for breaking down complex concepts, Mike's work has become essential reading for both crypto enthusiasts and newcomers alike. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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