Market Analysis: Bitcoin Updates Its Maximum for the Year

<img src="https://images.unsplash.com/photo-1621501011941-c8ee93618c9a?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDJ8fGJ0Y3xlbnwwfHx8fDE2OTg5MjE1MTV8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="Market Analysis: Bitcoin Updates Its Maximum for the Year" /><p>The cryptocurrency market showed a correlation with the stock market, gaining bullish momentum amid softening rhetoric from the Federal Reserve.</p><p>The price of the main cryptocurrency reached USD 35,900 for the first time in 18 months.</p><p>Wherein:<br>→ the positivity is also due to expectations that the US Securities and Exchange Commission will approve a Bitcoin ETF. According to analysts at Bernstein (an asset management firm), this could happen by the first quarter of 2024.<br>→ according to the same analysts, the price of Bitcoin could reach USD 150k by 2025;<br>→ Jurrien Timmer, director of global macroeconomics at Fidelity, called bitcoin a commodity currency or exponential gold that aims to be a store of value and a hedge against monetary depreciation.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/11/22.png" alt="Market Analysis: Bitcoin Updates Its Maximum for the Year" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/11/22.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/11/22.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/11/22.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/11/22.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Are the bullish sentiments that strong?</p><p>The chart provides information to help maintain an unbiased view of the market:</p><p>→ the price of BTC/USD is slightly above the upper border of the ascending channel. And this is a sign of overbought;<br>→ the price dynamics of BTC/USD forms a divergence with the RSI indicator, which is also in the overbought zone — which ultimately indicates the market’s vulnerability to a rollback;<br>→ the price is above the psychological level of 35,000 – and an analysis of the past behavior of the bitcoin price relative to round levels shows that false punctures are a common practice;<br>→ BTC/USD price has moved out of the consolidation zone (shown by the green triangle), but a breakout of the consolidation zone could be followed by a ton of buyers — and it is possible that they will find themselves locked in losses if a pullback does occur. A price return to the green triangle area will motivate them to close positions, thereby exerting even more selling pressure.</p><p>While ETF approval seems imminent and could attract significant capital to the bitcoin market over the long term, technically, the BTC/USD price could pull back from overbought territory.</p>