Bitcoin Price Punches Through $38,000 Resistance as Bulls Eye Test of $40K – Where Next for BTC?
Bitcoin (BTC) just punched through $38,000 to hit new highs for the year, with a near-term retest of $40,000 looking increasingly likely.
The world’s largest cryptocurrency by market capitalisation was last trading around $37,800 and with gains of around 1.5% on the day.
Despite the absence of most US market participants given the Thanksgiving holiday weekend, trading volumes are still elevated at over $21.5 billion so far for the session, above Monday’s $20.8 billion and Thursday’s $14.2 billion, as per Yahoo data.
The Bitcoin bulls have regained control of the market following a turbulent week that saw the world’s largest cryptocurrency exchange Binance settle dual lawsuits with the US Department of Justice (DoJ) and Commodity Futures Trading Commission (CFTC) by paying fines in excess of $7 billion, with ex-CEO Changpeng Zhao also being forced to step down and plead guilty to one offence (he may face a year in jail).
By the end of the trading week, analysts had largely agreed that Binance’s settlement removes systemic risk (i.e. the risk of the exchanges collapse) from the crypto market and should also boost the odds of near-term spot Bitcoin ETF approvals from the SEC, which could explain BTC’s breakout to fresh highs for the year.
Bitcoin’s latest push higher has seen it tease a breakout to the north of an ascending triangle structure it has been forming over the last few weeks.
These structures are characterized by an asset price consistently finding resistance at the same level ($38,000 in Bitcoin’s case), but price lows consistently getting higher, as bulls buy the dip with increasing enthusiasm.
Technicians often view the formation of such a structure as a bullish indicator that buying pressure is building up, and a
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