Experts analyzed the situation on the Bitcoin market

On the night of November 29, the Bitcoin (BTC) rate surpassed $38 thousand and immediately reached $38,280, updating the previously set annual maximum. The last time the Bitcoin rate rose above $38.28 thousand was on May 5, 2022. According to Coinmarketcap, at the time of writing, the price of the first cryptocurrency has adjusted to $37,881, writes RBC Crypto.

Exactly one year ago, on November 29, 2022, Bitcoin was trading around $16.4 thousand. Thus, over the past year, BTC has grown by almost 133%. However, it is still far from the historical maximum recorded on November 10, 2021 ($69 thousand).

Since November 10, Bitcoin has been trading in the range of $35,600 – $38,200. opinion Some analysts believe that such price consolidation is a positive sign for further upward movement.

Short term goals

Now there are enough short positions that can grow very quickly after breaking through $38.5 thousand, the expert admits.

According to Podolyan, the levels of $40 thousand and $41 thousand are also interesting for a set of short positions, and are also psychological levels for traders. If the market makes a strong correction, then the fall, most likely, “will be greedily bought back,” he believes.

While Bitcoin has not consolidated above $38 thousand, we should not rule out a correction under pressure from short sellers, says Roman Nekrasov, co-founder of the ENCRY Foundation. At the same time, the positive news background on the crypto market, in his opinion, suggests that the drawdowns are unlikely to be deep.

Ahead is the psychologically important barrier of $40 thousand, he agrees with the previous expert. Overcoming this mark can charge the market with positivity, which will bring Bitcoin to $45 thousand. The renewal of annual highs will most likely turn into a correction again.

Long term strategy

In mid-October, Bitcoin began to rise rapidly amid news of the possible approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC). In less than a month, the rate of the main cryptocurrency increased by almost $10 thousand.

Currently, several large investment companies are awaiting approval of their own exchange-traded funds (ETFs) for Bitcoin by the US Securities and Exchange Commission (SEC). The launch of such ETFs is considered in the crypto community to be a catalyst for a new bull cycle in the market.

The long-term strategy is to accumulate Bitcoin and wait for a bullish cycle in the market, Nekrasov is sure. The positive news background is formed by forecasts of the imminent approval of the first spot Bitcoin ETF in US history. Its launch could attract institutional investors to the digital asset market, whose investments are expected to support the growth of the crypto industry.

Speaking about the last point, it is worth keeping the decisions of American financial regulators in sight. A fall in inflation in the United States may bring the Federal Reserve closer to lowering the key interest rate. The changes could increase the investment attractiveness of high-risk assets such as cryptocurrency.