Bitcoin (BTC) Price Smashes Past $42,000 First Time in 18 Months, What’s Next?

As inflation shows signs of cooling, investors are growing more certain that the Federal Reserve has concluded its series of interest rate hikes. The attention has shifted to speculation about potential rate cuts in the upcoming year, creating a favorable backdrop for a rally in global markets.

Simultaneously, the digital asset industry is on the lookout for developments related to applications submitted by major players like BlackRock Inc. for the introduction of the first U.S. spot Bitcoin exchange-traded funds (ETFs). Bloomberg Intelligence anticipates that a group of these funds is likely to receive approval from the Securities and Exchange Commission (SEC) by January. The outcome of these applications will have a significant impact on the digital asset market.

“Bitcoin continues to be supported by optimism around SEC approval for an ETF and Fed rate cuts in 2024,” Tony Sycamore, a market analyst at IG Australia Pty, wrote in a note.

Where is the BTC Price Moving Next?

As per the technical chart, the next resistance to watch for Bitcoin would be $42,330. In the latest analysis provided by CrediBULL Crypto, the observation notes that open interest (OI) remains relatively low despite the ongoing upward movement in prices. The analysis highlights that historical instances of a decline in OI led to a maximum $2,000 drop before reaching a baseline, indicating a potential bottom.

As the current trading price stands at 40.5k, the local bullish invalidation level stands at 39.5k. Despite some anticipating a decline to 30k, the analyst expresses skepticism about moves down to 35k and below, considering them unlikely.

Referring to a previous statement, CrediBULL Crypto emphasized the expectation of no major pullbacks once the 40k+ regions are breached, maintaining confidence in this stance. Some market analysts also expect the BTC price to hit $60,000 before the next halving of April 2024.