Bitcoin (BTC) has reached $36,000, a level not seen since May 2022, and it held this position for 30 minutes before hovering around $35,000. These events reveal two crucial aspects of the current Bitcoin market. Firstly, $36,000 has become a new resistance level, a price zone where investors tend to sell, preventing further price increases and potentially leading to a decline. On the other hand, the zone around $35,000, which previously acted as resistance for the past nine days, is now behaving as solid support. In a bullish context, resistances often turn into supports due to traders’ psychology, further strengthening the bullish trend.
This price behavior supports the bullish trend that Bitcoin has experienced throughout the year. Multiple successful tests of $36,000 could help the market break through this resistance zone. However, it is important to note that Bitcoin might experience pullbacks if demand doesn’t strengthen. In case Bitcoin loses the area around $35,000, it could retreat to previous support levels, such as $33,200-$34,000, or even turn the previous resistance zone of $30,000-$32,000 into a new support.
Several tests of these levels could provide the market with a solid foundation to continue upward. One important factor driving Bitcoin’s price is the inclusion of Bitcoin exchange-traded funds (ETFs) in the Depository Trust & Clearing Corporation (DTCC). The DTCC is responsible for clearing, settling, and servicing securities in the U.S. market. The registration of Bitcoin ETFs with the DTCC indicates readiness for their launch if approved by the U.S. Securities and Exchange Commission (SEC). The SEC’s deadlines to approve Bitcoin ETFs are scheduled for January 2024. This suggests that, if approved, all ETFs will be authorized simultaneously to avoid favoring any particular one.
Bitcoin is in an exciting phase with its price reaching $36,000, and both resistances and supports play a significant role in its evolution. Furthermore, the inclusion of Bitcoin ETFs in the DTCC adds an additional layer of optimism to the market, with the SEC playing a crucial role in their future approval. Bitcoin investors are closely monitoring these developments for opportunities in an ever-evolving market.
