Bitcoin Surpasses 44k: Will It Reach 50k by 2024?
Bitcoin on the Way to the 50k Mark
Bitcoin, the king coin of cryptocurrencies, recently surpassed the 44k mark. Given this rise, the question arises as to whether the 50k mark can be reached before 2024. On December 6, Bitcoin reached prices last seen in April 2022. Could the increasing optimism around spot ETFs bring Bitcoin on the way to the 50k mark?
Panic Buying Drives the Rise
According to many crypto experts, panic buying could be a main reason for the ongoing price increase of Bitcoin. There could be an element of FOMO (Fear of Missing Out) and FUD (Fear, Uncertainty, Doubt) in the market, causing investors to buy more in anticipation of further price increases. However, panic buying, due to the extreme volatility of cryptocurrencies, is not a good strategy for long-term investors. Price increases achieved in this way are usually only temporary.
Spot ETFs Play a Role
One cannot ignore the connection between spot ETFs and the Bitcoin price. As the market continues to bet on the approval of spot ETFs for Bitcoin and Ethereum by the SEC, investors are trying to secure a “first-mover advantage” in hopes of securing some king coins before prices continue to rise. On December 5, Bloomberg analyst James Seyffart noted that Swiss firm Pando has entered the race to launch a BTC spot ETF.
Will Bitcoin’s Rally Continue?
Bitcoin’s metrics show positive signs for its price performance in the coming days. In particular, its open interest exceeded the $20 billion mark on December 6, a value it has not reached since December 2021. Traders often use open interest as an indicator to confirm trends and trend reversals. The rising open interest and price suggest that new positions are being created at this time and there is strong demand for BTC.
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Nevertheless, for Bitcoin to reach the 50k mark, it must convert the levels around 47k into support. According to AMBCrypto’s analysis, BTC’s RSI stood at 78.42 at the time of press – an overbought zone. This suggests the possibility of increasing selling pressure. Nevertheless, BTC held above the 50-day and 200-day EMAs at the time of press, suggesting the possibility of a sustained price rise. So, if investors continue to HODL and do not panic sell, Bitcoin could reach the 50k mark before 2024.
Source: AMBCrypto, CoinMarketCap, Coinglass, TradingView
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