Bitcoin (BTC) has established strong support between $25,000 and $30,000. Take a look at the next key resistance.
The price of Bitcoin has been steadily rising since October 13, following its inability to break the support level of around $26,000. Since then, it has continued to climb, reaching $35,000 earlier today, a level not seen since May 2022. The move from the support level to $35,000 represents a price increase of over 30% in just two weeks.
The BTC rise has boosted the hopes of many investors, with some believing it could mark the beginning of the much-anticipated bull run. However, due to the prevailing uncertainty in the Bitcoin and cryptocurrency markets, many still anticipate a price retracement, with some even expecting a drop below $15,000 to provide an attractive buying opportunity.
Institutional Investment Is Driving Bitcoin Price Rise
Experts have been analyzing the primary driver behind this recent price surge. According to a report from CoinDesk, Jack Tan of Woo Network characterizes Bitcoin as being in an ‘anti-gravity’ phase, rising rapidly beyond expectations. He predicts that BTC could potentially reach $75,000 in the near future.
Many Bitcoin users and experts have been eagerly awaiting the final approval of a Bitcoin ETF, believing that such approval could boost the market. Tan suggests that the recent increase in Bitcoin’s value is a glimpse of what might happen if exchange-traded funds (ETFs) linked to Bitcoin receive approval. He notes that much of the anticipated price increase has already been factored into the market since Bitcoin was valued at $25,000 back in February. Additionally, Tan highlights the decreasing discount associated with the Grayscale Bitcoin Trust, a way to invest in Bitcoin, which suggests a growing demand for Bitcoin investments, even without ETFs. According to Tan, the excitement about potential ETF approval is partly fueling Bitcoin’s remarkable ascent.
— Lookonchain (@lookonchain) October 24, 2023
When examining the factors contributing to Bitcoin’s rise, on-chain analytics firm Lookonchain points to increased institutional investment. They highlight the recent listing of the iShares Spot Bitcoin Trust on the Depository Trust & Clearing Corporation (DTCC) and the SEC’s approval of the Grayscale Ethereum Futures Trust (ETF), which now allows major financial institutions to invest directly in cryptocurrencies.
These regulatory developments have opened the door for institutional capital to flow into digital assets through traditional, regulated channels. This influx of significant capital has generated substantial buying pressure, driving cryptocurrency prices higher. While further regulatory clarity is needed, these developments indicate that traditional finance is increasingly embracing cryptocurrencies.
Regarding the Bitcoin price outlook, respected Bitcoin analyst Ali Charts reveals that Bitcoin has established strong support between $25,000 and $30,000. According to his UTXO Realized Price Distribution (URPD) model, which analyzes on-chain data, the next key resistance levels for BTC are at $38,440 and $47,360. This suggests that Bitcoin’s price is poised for further gains after solidifying its support base. Based on his URPD analysis, Ali Charts anticipates Bitcoin’s rally to continue, with the cryptocurrency facing its next challenges at these higher resistance levels.