Bitcoin Price Battling key $38K resistance level! Can Bulls prevail amid rising optimism and growing institutional interest?

With the market dynamics changing, traders and investors are keeping a careful eye on Bitcoin’s performance as it hovers around $38,173 at the time of writing, down slightly during early morning hours.

Bitcoin has tested the $38k level five times during the past week, and the pioneering cryptocurrency is currently navigating important technical barriers but its latest increase could signal a short-term turning point in its long-term price outlook. 

Bitcoin 5-day price chart. Pic Credit: Trading View 

At $38,610 and ten at $39,800, there are significant resistance levels that might either sustain the present momentum or prevent additional gains. Meanwhile, $36,935, $36,375, and $35,740 are established supportive buffers that are prepared to support and reverse any bearish drop.

13 Bitcoin ETFs application are currently pending with the US SEC

The announcement of BlackRock’s big ETF model improvements and the arrival of the 13th competitor in the Bitcoin ETF race have the cryptocurrency community in a frenzy.

Despite these setbacks, the investor community is growing more optimistic, with many aiming for the $40,000 mark, as demonstrated by the CME Bitcoin futures. However, this rise could be threatened by impending regulatory issues, especially those related to illegal financial activity.

MicroStrategy has also recently acquired an additional 16,130 BTC for approximately $593.3 million at an average price of $36,785 per Bitcoin. As of 11/29/23, Micro Strategy holds 174,530 bitcoins at an average price of $30,252 per bitcoin.

Prominent figures such as Robert Kiyosaki are busy promoting Bitcoin ETF investments and institutional entry might lead to a more diverse range of cryptocurrency investing options for clients in the future.

Bitcoin 24 hrs-day price chart. Pic Credit: Trading View 

With the Relative Strength Index (RSI) at 56.32, the market is neutral but trending positive because it hasn’t crossed the overbought level. The current bullish bias is strengthened by the Moving Average Convergence Divergence (MACD), which shows a positive crossover, a sign of possible upward advance.​​ 

RSI is a technical indicator that is most commonly used in trading to assess the momentum and overbought or oversold conditions of an asset. The RSI oscillates between a level of 0 and 100 and is typically used on a 14-day timeframe. An RSI value above 70 suggests that the asset may be overbought, suggesting a potential reversal or pullback. Conversely, an RSI value below 30 indicates that the asset is oversold, suggesting a potential buying opportunity.

The way the market is now behaving for Bitcoin is cautiously bullish. If the rising channel pattern continues, the BTC price may test greater resistance. Investors and traders alike should keep a close eye on these critical technical levels for clues about whether the strains of December will cause the November ceiling to give in.

Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

Leave a Reply