Bitcoin Skyrockets to $44K: Is $48K Resistance Next? - LMAX Analyst Insights

• Bitcoin Price Surges Beyond $44,000 Amid Anticipation of US Spot BTC ETF
• Rise of the Bitcoin Index XBX
• Supporting Factors for the Bitcoin Rally
• Bitcoin's Upward Price Momentum

Bitcoin Price Surges Beyond $44,000 Amid Anticipation of US Spot BTC ETF

In an exciting turn of events on Tuesday, Bitcoin$42,260 -0.64% (BTC) experienced a rapid surge, pushing its price above $44,000 on multiple cryptocurrency exchanges, marking the first time it reached this level since the beginning of April 2022. This surge was propelled by the largest cryptocurrency's ongoing rally, backed by decreasing interest rates and anticipation for a US spot bitcoin exchange-traded fund (ETF).

Rise of the Bitcoin Index XBX

The Bitcoin Index XBX, which amalgamates pricing data from various exchanges, climbed from below $42,000 earlier in the day to a session high of $43,868. Although it has since given up some of these gains, dropping to around $43,500, it remains up by almost 5% over the past 24 hours. The changeable behavior resulted in the liquidation of $73 million worth of leveraged bitcoin derivatives trading positions, predominantly shorts expecting lower prices, as revealed by Glassnode data.

Supporting Factors for the Bitcoin Rally

The bitcoin rally is driven by a combination of growing institutional investor interest and anticipation of a fast-approaching regulatory approval for listing spot-based BTC ETFs in the United States. This streamlines the access to the asset for traditional players, according to Joel Kruger, market strategist at LMAX Group. BlackRock and Bitwise recently submitted updated applications for Spot Bitcoin ETF.

Bitcoin's Upward Price Momentum

Kruger stated that BTC's upward price momentum appears to have a clear pathway until it reaches between $48,000 and $53,000. This prediction is based on technical price levels - specifically the highs reached in March 2022 and September 2021. Bitcoin price is drawing nearer to a resistance area signified by the March 2022 and September 2021 highs, Kruger noted.

There is a pleasing zone between those two levels with very little in the way of any significant resistance between the current price and that March 2022 high, Kruger expounded.

Edited by Jonathan Stoker