The crypto market is waiting for a big turnaround, even though this week’s economic events may not trigger major movements, the growing investor sentiment is putting the spotlight on high-risk assets, particularly crypto. So the burning question on everyone’s mind: will it finally break free, soaring to new heights? Or might this tantalizing upward trend hit a sudden roadblock? The anticipation is electric, as crypto enthusiasts eagerly await the answer.
What Do Analysts Say on BTC’s Resistance at $38,500?
Amidst the tumultuous landscape of cryptocurrency, Bitcoin stands poised on the cusp of a significant breakout. Analyst Ali Martinez chimed into the challenges impeding Bitcoin’s surge to $50,000. The Bitcoin UTXO Realized Price Distribution Index pinpointed a robust resistance at $38,500, indicating a $10,000 potential surge if this barrier is breached.
Recent market movements saw Bitcoin endure a slight 3% decline from its peak of $38,426 on November 24, followed by a substantial $2 million liquidation of short positions. This tug-of-war between bulls and bears often signifies a precursor to decisive market movements.
However, the crypto market witnessed a more extensive liquidation spree of $71.15 million across various positions, hinting at an imminent market rally. Based on Santiment’s data revealed significant whale activity, as these entities transferred sizeable amounts of USDT and USDC to crypto exchanges, playing a pivotal role in the market rally from late October to mid-November.
Now the market air is clear the buzz is for the fourth Bitcoin halving event anticipated in spring 2024. This impending event will halve miners’ rewards and consequently halve the new Bitcoin supply. Investors and traders are betting high on next year’s halving event since the market has been volatile and uncertain with macroeconomic factors.
Shooting for 94X. Can History Repeat?
Historically a good time? Bitcoin’s historical halving events have triggered monumental price surges: a 94x increase in 2012, a 30x surge in 2016, and a substantial 6x rise in 2020, leading to an all-time high of $69,000 in 2021.
Projections indicate that following this trend, a potential 6x surge post-2024 halving could propel Bitcoin to $220,000, aligning with forecasts from Bitcoin advocate Max Keiser. However, Bitcoin faces significant resistance at $38,500, stirring anticipation and caution among investors due to potential volatility.
Observers closely monitor Bitcoin’s movements, recognizing the pivotal role this resistance level will play in charting Bitcoin’s immediate course amidst selling pressure in the market. This crossover, followed by the looming halving event, promises an interesting phase, pumping market sentiments and strategies.
