Bitcoin analyst calls early bull market as BTC price targets $50,000 in December

  • Bitcoin analyst anticipates  a golden cross on the weekly BTC price chart, calling an early bull market in 2024. 
  • Analysts set a $50,000 target for Bitcoin price in the third week of December.
  • ETF analyst James Seyffart argues that the SEC is unlikely to reject Spot Bitcoin ETFs, however a delay is a likely scenario.

El Salvador launched a Freedom Visa and citizenship program where users deposit $1 million in Bitcoin or USDTether (USDT). The country made Bitcoin legal tender in 2021 and since then has drawn the interest of crypto market participants through BTC adoption.

Catalysts driving Bitcoin price alongside the El Salvador citizenship program include the anticipation surrounding Spot Bitcoin ETF approvals, and the institutional adoption of Bitcoin.

Also read: Bitcoin price to hit $125,000 in 2024 according to Matrixport research

Daily Digest Market Movers: Bitcoin analyst predicts an early BTC bull run in the beginning of 2024 

  • Bitcoin price is trading sideways close to the $43,500 level on Friday after BTC yielded 15.25% gains for holders this week. 
  • Bitcoin analyst Alistar Milne analyzed the weekly Bitcoin price chart and noted that the current BTC bear market was the “worst” time spent under the 200-week Moving Average price for Bitcoin.
  • In accordance with Milne’s prediction, BTC’s 50-week Moving Average will soon cross back above the 200-week in a “golden cross” formation. 
  • Milne considers this a sign of an early bull market for Bitcoin

BTC/USD 1-week chart

BTC/USD 1-week chart 

  • Catalysts driving Bitcoin’s recent gains include El Salvador’s announcement of the Freedom Visa and citizenship program, in partnership with Tether, and Robinhood exchange’s launch of Bitcoin and crypto trading in the European Union. 
  • El Salvador’s Freedom Visa requires a $1 million investment in Bitcoin or USDT and welcomes investors to a “Bitcoin Lifestyle”. 
  • Robinhood has ushered in commission-free crypto trading in the EU, driving cryptocurrency adoption and ushering demand from market participants in the region. 
  • These catalysts are likely to fuel Bitcoin price rally and support the bullish thesis for BTC. 
  • In a recent interview with Kyle Chasse, Bloomberg ETF analyst James Seyffart said that the Securities and Exchange Commission (SEC) is less likely to reject Spot Bitcoin ETF applications. Instead in the event that the regulator is not prepared for immediate launch, a delay is the better course of action. 

Technical Analysis: Bitcoin price eyes $50,000 target for week 3 of December

  • Bitcoin price has yielded nearly 23% gains for BTC holders in the past month and 15% gains in the past week. BTC price is likely to sustain its gains and target the $50,000 level in the third week of December, according to crypto analyst and Web3 investor, @CredibleCrypto. 
  • The analyst noted the addition of $30 million in Bitcoin spot bids and argued that irrespective of whether BTC price sweeps the $42,000 lows or not, the asset is likely to tag $50,000. 

BTC/USD price chart

BTC/USD price chart 

  • The analyst analyzed Bitcoin price on low timeframes and predicted a correction for lack of spot market buyers and argued that a significant shift needs to be taken in consideration to see BTC price rally to $50,000.
  • @CredibleCrypto asks traders to be cautiously bullish on lower timeframes and maintains a long-term bullish bias on Bitcoin price.

Open Interest, funding rate FAQs

How does Open Interest affect cryptocurrency prices?

Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.

How does Funding rate affect cryptocurrency prices?

Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.

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