The recent iconic move by Bitcoin caused the price to rise beyond $40,000 for the first time since May 2022, making it a significant milestone in its ongoing rally. Besides, the Ethereum price also joins the upward trend, surpassing $2,200 amid a broader market rally. Notable gains are seen with the other altcoins within the top 10 experiencing subdued movements.
What Led to the Recent Price Rise?
The recent Bitcoin rally is attributed to the dovish comments from U.S. central bankers and the growing hopes for the approval of the Bitcoin spot ETF. Secondly, the traders also appear to have become optimistic about the upcoming rally. The recent reports show the holders withdrew 37,000 BTC during the second fortnight of November, indicating they were taking direct custody of their tokens.
Apart from this, the market anticipates a potential rate cut in the coming year following FED chairman, Jerome Powell’s comments on interest rates being in restrictive territory, which have influenced various markets. Besides, the traders have been engaging in topside option plays, placing huge long trades, and expecting a price rise to $45,000 by the end of the year. This indicates growing confidence and expectations, which could contribute to the further upward movement.
What’s Next for the BTC Price?
The week ahead brings crucial economic data that includes U.S. ISM services, PMI, and non-farm payrolls for December. As the price surges and continues to trade beyond the gains, the trend is expected to remain elevated for the longer term.
With the recent rise, the BTC price has soared a step ahead towards the upper resistance of the symmetrical triangle. A weekly close above $42,472.89 may validate a breakthrough beyond the pattern that may trigger a fresh move towards the next resistance above $46,000. A minor possibility of a pullback occurs as a strong non-farm payroll figure might impact rate-cut bets for 2024, potentially impacting the BTC price ascent in the coming days.
