Bitcoin Making Strong Moves, USDT Supply Suggest BTC Price Rally to $40,000
Bitcoin continues to make strong moves with the BTC price shooting another 1.5% moving all the way to $38,000 levels earlier today. As per several on-chain metrics, bulls seem to be gaining an upper hand while setting up their eyes on $40,000 and beyond.
USDT Buying Price is Growing
Over the last six months, the 100 largest Tether wallets have collected more than $1.67 billion in USDT tokens. This shows that the buying power has increased by a staggering 10% during this time.
On-chain data provider Sanitment reported that the Bitcoin price has reached $38,300 for the first time since May 5, 2022. This surge is attributed to various factors, with a significant contributor being the top 100 largest Tether (USDT) addresses, which have collectively added $1.67 billion in the past six months.
The increasing buying power of these whale USDT addresses suggests a bullish trend, and if this momentum continues, analysts anticipate the likelihood of Bitcoin surpassing $40,000 in the near future.
Popular crypto platform Greeks.Live reports that following the monthly delivery, Bitcoin has surged, breaking the $38,000 mark and establishing a new high for the year. This upward movement has also contributed to the recovery of Dvol, which had previously dropped to 51% after the delivery but has now returned to its recent average of 54%.
Market sentiment is currently highly optimistic regarding the potential approval of the Exchange-Traded Fund (ETF) in the first quarter of the next year. Skew’s significant positive bias, consistent for over a month, aligns with market expectations. Investors are advised to consider every decline as a favorable opportunity to enhance their positions until the ETF is officially adopted.
Bitcoin Price Action Ahead
Bitcoin’s upward momentum is facing resistance around the $38,000 mark, but the subsequent declines have been brief and minor, indicating persistent demand from buyers seeking opportunities during price consolidation.
This pattern forms an ascending triangle on the price chart, characterized by a horizontal upper resistance around $37.8K and a rising lower support from shallow pullbacks. The shallower nature of recent declines suggests a growing bullish sentiment, and analysts like Alex Kuptsikevich from FxPro anticipate a potential breakout above $40,000, considering the ascending triangle formation. However, the question remains on how soon can this happen?