Bitcoin Surges to $38K: Best Monthly Close in 19 Months

Bitcoin Surges to $38K: Best Monthly Close in 19 Months

BTC Strength Endures, Breaking Monthly Records and Defying Market Expectations

Bitcoin witnessed a remarkable end to November, securing its best monthly close since April 2022, with the price tapping $38,000 as December commenced. Despite the persistent bearish sentiment, BTC displayed resilience, avoiding a sell-off at the monthly close and maintaining key support levels.

BTC’s Strong Monthly Finish

Bitcoin’s price strength persisted, defying market expectations as it reached $38,000 on December 1. Moreover, it happened following its best monthly close in over a year. The impressive performance strengthened a monthly close at just over $37,700. Such a bid liquidity safeguards the intraday range and prevents a last-minute sell-off, according to Cointelegraph Markets Pro and TradingView.

Resistance Levels and Strength Indicators

Analysts noted that major resistance levels on monthly timeframes now lie higher, particularly at $47,000 and around the 2021 all-time high of $69,000. The high-timeframe chart outlook was described as “consistent and constructive,” the monthly candle showcased strength, characterised by a body low of $34.5K, signalling robust market conditions.

BTC’s Move Above $38,000 and Market Response

Shortly after the monthly close, Bitcoin’s move above the $38,000 mark marked a significant development. Notably, this move occurred amid limited reactions to United States macroeconomic data, emphasising Bitcoin’s independent market dynamics. The cryptocurrency’s price range below $40,000 showed up as “having significant features”. Besides, Material Indicators co-founder Keith Alan emphasises the historical resistance/support lines within this range.

SEC Engages with Grayscale and BlackRock on Bitcoin ETFs

In a separate development, the U.S. Securities and Exchange Commission (SEC) engaged with asset managers, including Grayscale, BlackRock, and the Nasdaq, regarding the potential approval of a bitcoin exchange-traded fund (ETF). The SEC met with Grayscale to discuss the conversion of the Grayscale Bitcoin Trust into an ETF. Additionally, meetings with BlackRock and the Nasdaq were held, marking a formal step in the regulatory process.

Growing Confidence in Bitcoin ETF Approval

The growing confidence in the market regarding the approval of a Bitcoin ETF has contributed to the positive momentum in Bitcoin’s price. While the SEC has delayed decisions on several BTC funds, industry experts anticipate potential launches in the U.S. early next year. Despite his previous criticisms of crypto, SEC Chair Gary Gensler has indicated a willingness to consider staff input on a potential bitcoin ETF.

Market Impact and Future Expectations

The optimism surrounding a potential bitcoin ETF approval has catalysed the cryptocurrency’s price surge, trading above $37,000. This renewed confidence follows a period of fluctuations, with Bitcoin’s price falling to around $26,000 late this summer. As the market anticipates regulatory decisions, the dynamics of Bitcoin’s price movement continue to be influenced by both internal and external factors.