Bitcoin Surges as SEC's Decision on Bitcoin ETFs Gets Underway
In the last 24 hours, the Bitcoin price surged by 6.40%, surpassing the $47,000 mark. The market is waiting for the SEC's decision on Bitcoin ETFs. What will be the next move for the main cryptocurrency?
Why Bitcoin is growing?
Traders are preparing for a rally as this week's events may affect Bitcoin's price dynamics. On January 10, the SEC will make a final decision on Bitcoin ETFs. On January 11, the Fed will release CPI data and on January 12, the core PPI will be released. Historically, the cryptocurrency market reacts to inflation data. The inflation rate determines how much room the Fed has to cut rates. And as analysts' expectations point to the Fed softening policy and lowering interest rates, the U.S. dollar against a basket of currencies fell 0.04% to 102.26, while Bitcoin rallied in the meantime.
BTC hit a 21-month-high, surpassing the $47,000 mark last night. Investors await the SEC's final decision on Bitcoin ETFs, expressing positive sentiment. BlackRock, Grayscale and other issuers have submitted the latest documents, including the amount of fees they plan to charge. This gives more confidence that Bitcoin ETFs will soon hit the market. The SEC could potentially approve several applications to level the playing field in the market.
Bitcoin's growth is also driven by declining bond yields. Bitcoin price dynamics are also closely related to bond yields. More often than not, they move in opposite directions. The yield on 10-year Treasury bonds fell nearly 4 basis points on Monday.
Finally, adoption of the asset pushed the price up. BTC Map data showed that by the end of 2023, the number of merchants accepting BTC reached 6,126. At the beginning of 2023, the figure was 2,207.
BTC Price Prediction
Bitcoin price started a new growth above the resistance zone of $43,500. The asset gained bullish momentum above the levels of $44,000 and $44,500 and moved into the positive zone. The bulls pushed the price to a new high at $47,306 and the price is now consolidating the gains. At the time of writing, the asset is trading around 46,571.
Source and Copyright © TradingView
For further growth, Bitcoin needs to overcome the resistance level of $47,200. A break above this level could send the price to $48,000. The next major resistance is at $49,250. If the bulls manage to overcome this level, it will open the way for a move to $50,000.
However, if BTC fails to overcome the $47,200 level, it could start a new decline to support levels of $46,400, $45,900 and $45,250.
Some analysts believe that the potential ETF approval will cause Bitcoin to rise slightly, up to $48,000.
That's not a 100 percent statement. The cryptocurrency market is known for its volatility and unpredictability. Remember the importance of doing your own research.
