The bitcoin exchange rate again reached an annual maximum on November 29. Experts share possible strategies in the current market environment.
On the night of November 28-29, the price of bitcoin (BTC) rose above the $38,000 mark and reached $38,280, updating its previous annual maximum. The last time the bitcoin exchange rate reached a level above $38,280 was in May 2022. According to Coinmarketcap, by the time of 19:50 Moscow time, the price of bitcoin had slightly adjusted and amounted to $37,772.
Comparing the situation with a year ago, on November 29, 2022, bitcoin was trading at approximately $16.4 thousand. Thus, over the past year, bitcoin has grown by almost 133%. But the historical maximum recorded on November 10, 2021 ($69 thousand) is still far away.
Since the beginning of November, bitcoin has been in the range of $35,600 to $38,200. Some analysts believe that such price consolidation is a positive signal for further growth.
Short-term prospects:
Andrey Podolyan, CEO of the Cryptorg trading platform, sees an opportunity for additional bitcoin growth. He indicates a target level in the region of $ 40-41 thousand dollars. According to the expert, after overcoming the level of $ 38.5 thousand, rapid growth may occur, given the presence of short positions.
A short strategy (short) involves selling an asset that the trader does not own, with the intention of buying it back at a lower price and making money on the difference. A significant increase in the price of an asset often leads to the closure of short positions and an additional increase in prices.
According to Podolyan, the levels of $40 thousand and $41 thousand are interesting both for a set of short positions and from a psychological point of view for traders. He also suggests that in the event of a strong correction, the market is likely to recover quickly.
However, as long as bitcoin does not gain a foothold above the level of $ 38 thousand, there is a possibility of correction under the influence of shortists, says Roman Nekrasov, co-founder of the ENCRY Foundation. Despite this, positive news in the crypto market is likely to mitigate any falls.
Nekrasov notes that bitcoin has already tried several times to overcome the level of $ 38 thousand and then experienced a correction in the amount of 3% to 7%. He suggests that there is a possibility of a decline to the level of $ 35-36 thousand.
There is a psychologically important barrier of $40 thousand on the horizon, as the previous expert agrees. Overcoming it can stimulate the market and raise bitcoin to $ 45 thousand. However, the update of annual highs is likely to be accompanied by a correction as well.
Long-term strategy:
In mid-October, bitcoin began to grow rapidly after the news about the possible approval of a spot bitcoin ETF by the SEC (US Securities and Exchange Commission). In less than a month, the bitcoin exchange rate has increased by almost $ 10 thousand.
Currently, several large investment companies are awaiting approval of their own exchange-traded funds (ETFs) for bitcoin by the SEC. The launch of such ETFs is seen in the crypto community as a catalyst for a new bull cycle in the market.
The long-term strategy includes accumulating bitcoin and waiting for the arrival of a bullish cycle in the market, according to Nekrasov. Positive news is expected in connection with the possible approval of the first-ever spot bitcoin ETF in the United States. The launch of this ETF may attract institutional investors to the cryptocurrency market, which, according to forecasts, will support its growth.
The spot bitcoin ETF is considered important because various ETFs, including gold, manage trillions of dollars worth of assets. The crypto community believes that even a small part of this capital can have an impact on the global crypto market. If spot bitcoin ETFs are approved, this will increase the demand for cryptocurrency, since when buying shares of such funds, there is a direct purchase of bitcoin on the market, which affects its price.
So, when assessing the current situation in the bitcoin market, it is worth taking into account many factors, including market psychology, the cyclical nature of the cryptocurrency and regulatory changes. Risk management and trade automation can help investors cope with emotions and adapt their strategies to the changing environment.
