A breakout above $36,000 would push Bitcoin’s price toward the technical resistance at $40,000 and potentially set the stage for a move to $45,000 by the end of 2023. This conclusion was reached by Matrixport analysts.
Analysts named six potential drivers that could contribute to positive dynamics:
- Approval by the SEC of the Bitcoin-ETF in January 2024 with trading starting in February–March;
- IPO of Circle — issuer of USDC — by April;
- Court approval for the relaunch of FTX in December 2023 with actual resumption of operations in May–June; over the following 12 months, experts anticipate the platform returning to the top-3 players in the industry;
- halving in the Bitcoin network;
- the implementation of EIP-4844 following the Dencun hard fork in the Ethereum blockchain in Q1;
- potential start of easing of the Fed monetary policy by mid-2024.
Analysts warned of a new surge in Bitcoin next week if upcoming data show further inflation slowdown.
“Given the steady growth in the number of buyers during US trading hours, we may see prices rise by the end of the month (and the year). ‘Santa Claus rally’ could begin at any moment”, said the analysts.
Earlier, analysts noted that Bitcoin shorts would be hit by the ‘Santa Claus squeeze‘.
Earlier, MN Trading founder Michaël van de Poppe said that digital gold has moved from accumulation to a bull market.
Analysts at JPMorgan described the crypto market rally as ‘excessive‘.