Bitcoin (BTC) continues to showcase its bullish momentum as it surpasses the $38,000 threshold. Breaking away from the previous trading range of $36,500 to $37,500, BTC is currently trading at $38,100, slightly below its yearly peak of $38,400 reached on Friday, November 24. This marks yet another significant milestone in BTC's ongoing bullish resurgence. Bitcoin surges past $38,000, expecting new yearly high
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Bitcoin Achieves New 52-Week Closing Record
According to The Birb Nest, a crypto trading firm, Bitcoin has achieved a new 52-week closing record, holding above $32,000 for four consecutive weeks. This demonstrates the continued strength of the upward trend in the market.
The analysis conducted by the firm suggests that this performance aligns with the principles of Elliott Wave Theory and indicates the presence of the third wave within the ongoing bull market. The third wave is a visually captivating and significant element of the overall pattern, as outlined in the theory.
Following the consolidation phase of the second wave, which occurred between August and October, Bitcoin enters the third wave with a breakout that aligns with the prevailing trend. This particular wave is known for its extended nature, often surpassing the length of the first wave that began in January 2023 for BTC.
Typically, the third wave exhibits a significant extension compared to the initial wave, often reaching the 161.8% Fibonacci level. In simpler terms, the third wave can be understood as a 161.8% Fibonacci extension of the first wave.
Solid Support Levels Reinforce Positive Outlook For BTC
According to The Birb Nest, Bitcoin's market momentum is supported by key technical indicators. The 200-week moving average (MA) at $29,130 and the 50-week MA at $27,450 act as strong support levels, reinforcing the positive outlook for the cryptocurrency.
Moreover, Bitcoin's correlation coefficient has increased to 0.75, indicating a higher synchronization with the performance of the S&P 500. This correlation can be seen as a positive sign, especially as the S&P 500 and Nasdaq follow their historically successful 'Best Months' strategy, which is associated with market gains.
Additionally, the firm believes that investor interest is fueled by anticipation surrounding the upcoming Bitcoin halving event and the potential approval of a Bitcoin spot exchange-traded fund (ETF). These factors suggest the possibility of further market upturns and provide an optimistic outlook for Bitcoin's future.
It remains to be seen whether the current bullish momentum will be sustained and if BTC can consolidate above $38,000 and reach the $40,000 level in 2023.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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