Bitcoin and the crypto market continue to smash critical resistance levels and hit new yearly highs. The cryptocurrency stands closer to the $50,000 area as 2023 ends, and two major bullish catalyzers stand on the horizon.

As of this writing, Bitcoin (BTC) trades at $41,800 with a 6% profit in the last 24 hours. In the previous seven days, BTC recorded an impressive 13% rally as analysts and the crypto community celebrated the beginning of a new bull cycle.

Bitcoin Whales Behind $40,000 Rally, Are More Profits In Store?

Data provided by Ki Young Ju, CEO of crypto analysis firm CryptoQuant, indicates that Bitcoin whales have supported the current price action since August. At that time, the cryptocurrency re-took the higher area at $20,000 and stood below the critical resistance at $30,000.

As Bitcoin trended to the upside, whales took on “giga long positions” potentially in preparation for the current rally. This risk-on behavior began more discretely when BTC touched $16,000.

Young Ju tied the market activity to increased buying orders from US investors. On Coinbase, the price of Bitcoin “skyrocketed” in October 2023.

Investors in the country have been buying more of the cryptocurrency in preparation for the spot BTC Exchange Traded Fund (ETF) approval and the Halving event. The latter of this event is the reduction of the rewards for mining BTC.

Furthermore, the CryptoQuant CEO believes retail investors have yet to board the rally. As seen in the chart below, BTC’s Realized Cap stood below 0.1, indicating “low liquidity” from retail investors in the crypto market.

Game Is Not Over For BTC

Additional data provided by Material Indicators confirmed the increasing buying pressure from whales. Analyst Keith Alan claimed that this behavior occurs to attract liquidity to the market.

Once liquidity, mostly from retail investors, enters the market, whales can “distribute” their coins or “dump” on retail to take profit from their position. Via his X handle, the analyst stated the following regarding BTC’s potential to continue the uptrend:

(…) because we now have ~$86M in near range #BTC bid liquidity, I’m considering buying this pullback because it doesn’t appear the game is over yet.

Cover image from Unsplash,chart from Tradingview

Dan Gambardello predicts a bullish trend for Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) in the current cryptocurrency market.

Crypto Analyst On The Bitcoin Rally

Dan Gambardello took to his official X (formerly Twitter) handle to share his bullish about the three major cryptocurrencies. The analyst post was accompanied by a video where he explained why he is bullish on these three coins.

According to the analyst, positive setups have appeared on the charts of all three cryptocurrencies. At the beginning of the video, Gambardello stated that he believes Bitcoin has a short-term upside target of about $42,000.

But regardless of whether the market leader hits this threshold, he believes there might be a correction. His warning of a correction is due to the overbought territory the crypto asset has entered.

Additionally, he revealed that the impending correction of BTC would resemble past price movements. He further asserted that the asset would make this adjustment a “common move.” 

The analyst also discussed the potential for Bitcoin to consolidate near the $42,000 resistance level. According to the analyst, it would signal the beginning of a new phase for the market when it takes place.

Gambardello also expressed his confidence about the next bull run, believing it to be imminent. He noted that the worst bearish trends for Bitcoin ended in January this year and have played out “quite well” ever since. 

However, he asserted that crypto market consistency might not have played perfectly, but it has been pretty close to being “accurate” in terms of what the cycles have been doing. He stated:

In this macro piece of data I charted in 2018, BTC was like $3,500 or so. And this was my approach to the macrocycles of crypto. And has it played out perfectly? it has not been perfect, but it has been extremely close to on point, in terms of what these cycles are doing.

Dan Gambardello On Ethereum (ETH) And Cardano (ADA)

Gambardallo believes that the Ethereum trend appears to be different from that of BTC. He highlighted an ascending triangle for the crypto asset, which could see ETH reaching about the $4,000 price mark. He also highlighted a critical resistance level for ETH, around $2,270, on its chart. 

So far, he believes ETH could surge to $3,000 if it can break above this level in the next few weeks. However, he further urges the cryptocurrency community to be prepared for a huge crash when this happens.

For ADA, the analyst has highlighted an ascending triangle for the asset with quite a few resistance levels. He projected that if ADA breaks out in the coming days, the cryptocurrency would surge to $0.45. Also, his longer-term price stance for ADA is between the $0.80 and $0.85 range.

The Ethereum ecosystem is back on track with its mission to ensure that Ether is deflationary following a significant increase in the burn rate. Several factors are said to have contributed to this milestone, including voluntary exits by validators. 

Over 106,000 ETH Burned In The Last 30 Days

According to data from Ultra Sound Money, over 106,000 ETH have been burned in the last 30 days. In that same period, only just over 70,000 ETH have been issued. This has caused a significant decrease in Ethereum’s supply, with it being down by over 35,000 ETH. 

This is a welcome development, as the disparity between the burn and issuance rate hasn’t always been this obvious. That led to concerns as to whether ETH was truly deflationary or not. It also began to seem like the London Hard Fork wasn’t effective. Ahead of the Merge, Ethereum introduced this upgrade in its efforts to make ETH deflationary. 

ETH investors are sure to be delighted with the fact that the token has once again become deflationary. Such development could propel ETH’s price to new heights. Moreover, it comes at a time when the market is preparing for an imminent bull run. As such, this macro factor, alongside other ones, places it at the forefront to be one of the biggest gainers. 

Factors That Have Contributed To The Ethereum Deflationary Status 

A report by Glassnode provided insights as to why Ethereum is deflationary once again. One of them happens to be the fact that the number of validators onboarded has slowed in recent weeks. Instead, Ethereum has an increasing number of validators exiting the ecosystem. This development has ultimately caused ETH issuance to slow.

This trend of exits notably began at the start of October. This seems to be when investors actually began to take full advantage of the Shanghai upgrade that had taken place in April. Before October, the exiting event is reported to have been at an average of 309 validators per day. That increased to 1018 validators per day at the start of October. 

Meanwhile, the burn rate during this period is said to have increased significantly due to the growing network activity. The increase in network usage has led to higher gas fees. The daily amount of transaction fees burned through the EIP1559 protocol has also increased as a result. The accumulated fees burned between October and November are reported to have reached 5,368 ETH. 

Ethereum is flying high at the moment, and this could be partly due to its recently achieved status. At the time of writing, the crypto token is trading at around $2,240, up by over 3% in the last 24 hours, according to data from CoinMarketCap. 

Bitcoin has broken past the $41,000 level during the past day, but FOMO could be the number one danger to a further surge towards $50,000.

Bitcoin Social Dominance Has Spiked Following The Rally

According to data from the on-chain analytics firm Santiment, signs of euphoria have appeared among Bitcoin traders following the latest climb in the asset’s price.

The main indicator of interest here is the “social dominance,’ which is based on another metric called the “social volume.” This latter indicator basically tells us about the amount of discussion related to a given topic that is happening on the major social media platforms right now.

The metric tracks this by going through each post/thread on these platforms to see if they are making mentions of the topic or not. However, rather than counting the number of mentions themselves, it separates the posts and counts the total number of them instead.

Because of this approach, a more organic overview of the market becomes apparent, as the indicator will only spike when discussions are happening across social media, rather than inside just one or two large threads.

The social dominance compares this social volume of any given coin against that of the top 100 cryptocurrencies combined. Thus, whenever this indicator shoots up, it means that the mindshare related to the asset is going up among social media users.

Now, here is a chart that shows the trend in both the Bitcoin social volume and social dominance over the past year:

As displayed in the above graph, the Bitcoin social dominance observed a huge increase when the Bitcoin price broke above $40,000 during the past day. This implies that users shifted focus toward BTC from the other coins after this rally.

While some attention is healthy (it’s even required, otherwise the move would become unsustainable), too much hype has often not turned out to be favorable for the cryptocurrency in the past.

An example of this is clearly visible in the chart, where the BTC rally hit its brakes back in March of this year after the social volume and social dominance both registered significant spikes.

Going by this, the current even higher values of social dominance could be a worrying sign for the asset’s hopes of rallying toward the $50,000 mark. Though, so far, BTC has still been able to continue its climb despite this development, as it has now broken past the $41,000 barrier as well.

In the end, it comes down to whether the discussions have a bullish or a bearish view. More of the latter would provide better chances for the rally to continue. As Santiment explains, “FUD & FOMO toward the ongoing ETF confirmation dates will dictate whether $50,000 arrives sooner rather than later.”

BTC Price

It would appear that Bitcoin isn’t done with its surge yet as the coin has now risen above $41,800, inching closer to $42,000.

The Shiba Inu (SHIB) price is entering a week that has the potential to be the most important week in 1.5 years. As explained in previous analyses, SHIB has shown conflicting patterns in the weekly chart: a bullish quadruple bottom and a descending triangle.

This week, the situation could be resolved and the bullish chart pattern may be validated. At press time, SHIB traded at $0.00000933. Thus, the Shiba Inu price broke above the descending trendline of the triangle pattern.

Why SHIB Enters The Most Crucial Week In 1.5 Years

The quadruple bottom pattern has formed over the extended period of 1.5 years, with the price touching the support zone between $0.00000715 and $0.000006 four times, creating an ultra-strong base. Over the last 18 months, it suggested a strong level of support, as SHIB has consistently bounced off this price point, indicating a reluctance to move lower.

Related Reading: Shiba Inu Ripple: Massive $300 Billion Transfer Sends Crypto Community Into Speculation

The descending triangle, characterized by a flat lower-bound support level at $0.00000715 and a down-sloping upper-bound resistance trendline, has acted as strong resistance. The price has been rejected at the resistance line a total of 10 times since last year. As the price pushed above this trendline, a weekly close above this line could signify the commencement of a bullish reversal.

Moreover, the 50-week exponential moving average (EMA – orange line) also played a crucial role. On the occasions when SHIB was able to break out above the descending trend line of the triangle (on the lower time frames), it never managed to close the week above this indicator.

This week, SHIB bulls have a new chance. While SHIB is already trading above the descending trendline of the triangle, the price still has to close above the 50-week EMA at $0.00000973 next Sunday. If it succeeds, this would mark an unprecedented extremely bullish sign.

Finally, a breakout above the psychologically important level of $0.00001 could be the last hurdle for a strong move upward. A breakout of this nature could lead to a shift in market sentiment, with the potential to initiate a significant price surge.

Notably, the volume does not show an unusual spike yet, which would typically accompany a breakout, suggesting caution. However, the weekly RSI stands at 57.36, indicating the asset is neither overbought nor oversold and potentially allowing room for upward movement if a breakout is confirmed.

Short- And Long-Term Shiba Inu Price Targets

Looking at the Fibonacci levels, the upcoming key price targets to watch following a successful breakout would be the 0.382 and 0.5 Fibonacci levels, standing at $0.00001051 and $0.00001190, respectively. These levels would be the short-term targets for SHIB, potentially acting as resistance points in the event of an uptrend.

In the mid-term, the next crucial price levels are the 0.618 Fibonacci level at $0.00001329, the 0.786 Fibonacci level at $0.00001527 and the August 2022 swing high at $0.00001780. However, traders can also expect notable resistance at $0.000017 which acted as crucial support and resistance in the past.

In the long term, the 1.618 Fibonacci extension level at $0.00002509 and the 2.618 Fibonacci extension level at $0.00003690 are some notable price targets.

In conclusion, the weekly close firmly holds the market’s attention. If SHIB’s price sustains above the descending trendline, it would mark a significant technical pivot point, likely catalyzing a bullish wave due to the culmination of the quadruple bottom support hold and the descending triangle breakout.

Crypto analyst Dave the Wave has shared a bullish prediction for the flagship cryptocurrency, Bitcoin. He believes that the crypto token could rise to as high as $200,000 and even provided a timeframe using technical analysis.

When Bitcoin Will Hit $200,000

In a post shared on his X platform, Dave the Wave shared an accompanying chart that put Bitcoin’s price at $200,000 on December 1, 2025. Alongside this, he made known the fact that BTC’s moving average convergence divergence (MACD) indicator seems very bullish. 

The crypto analyst went on to give another scenario on how things could play out in terms of this price projection. According to him, Bitcoin hitting $200,000 could be front-run by a year, meaning that it could happen as soon as December 1, 2024. He noted that this could happen when most people are anticipating this price level. 

Dave the Wave had also earlier predicted that Bitcoin could hit a new all-time high before the year ran out. Based on the chart he shared then, he hinted that the BTC price could hit $69,000 this year. The crypto analyst doesn’t seem to have given up on that happening, as he recently shared an updated chart suggesting that Bitcoin could still hit that price level before 2024.

BTC Price Above $41,000

The flagship cryptocurrency broke above $41,000 to so much excitement from the crypto community. Bitcoin is on a run right now and many believe that it is only up from here on. The reason for this rally has so far been attributed partly to an imminent approval of a Spot Bitcoin ETF. Others believe that it is simply because the Bitcoin Halving is around the corner.

Whatever the reason is, what is most obvious is the significant amount of investors trooping into the crypto market right now, with Bitcoin in particular. Two weeks ago, BTC saw inflows totaling US$312m, bringing its year-to-date inflows to just over US$1.5 billion. Liquidity is also flowing into the ecosystem of other tokens like Ethereum, XRP, Solana, Cardano, and BNB. 

With Bitcoin above $40,000, Dave the Wave seems more optimistic than ever. In one of his most recent X posts, he mentioned that BTC could go “parabolic” if it breaks the upward channel. From the chart he shared, $44,000 seems to be the next stop for the flagship cryptocurrency. 

At the time of writing, Bitcoin is trading at around $41,400, up by over 5% in the last 24 hours according to data from CoinMarketCap. 

The price of Ethereum (ETH) has risen sharply today, hitting a new 2023 high of $2,250 as the cryptocurrency market continued to trend higher toward a successful year-end.

The recent strong upward trend in Ethereum aligns with Bitcoin’s continuous attempt to break above $41,000, which it did today. As of the time of writing, the price of bitcoin was $41.437.

Analysts say the approval of a BlackRock spot ether instrument would result in an influx of institutional capital into Ethereum, the second-largest cryptocurrency network globally.

Ethereum’s Price Surge

The most recent charts show an upward trajectory that has many analysts and investors upbeat about the cryptocurrency hitting the coveted $3,000 barrier in the upcoming weeks or months.

As this transpired, a crucial on-chain trade statistic reveals that, just 24 hours prior to the most recent price breakout, Ethereum 2.0 stakers made an unexpected $330 million move.

On December 2, investors pulled out a massive 169,220 ETH (about $337 million) from ETH 2.0 beacon chain Proof of Stake contracts, according to IntoTheBlock.

Interestingly, since the Ethereum Shapella Upgrade enabled withdrawals in April 2023, this is the second-highest staking withdrawal amount.

Resilient Rebound And Bullish Market Signals

Today, when the price of Bitcoin broke beyond the coveted $41,000 barrier, the cryptocurrency market is starting to feel more optimistic again.

The price of ETH recovered from the psychologically critical $2,000 threshold in response to this positive change, showing an 8% weekly increase to its current trading price of $2,250.

The classic sign of a bull market is a sequence of higher lows and higher highs, which is what we observe when we look at Ethereum’s daily chart. The 50-day and 100-day moving averages served as dynamic resistance, but the price has now overcome both.

“On the basis of lower yields, cryptocurrency has been going pleasantly higher, along with Gold,” crypto data firm Amberdata stated in a newsletter on Sunday.

In a note, Lucy Hu, Senior Analyst at Metalpha, stated that there is increasing market expectation for a rate reduction in the coming year.

Investor optimism on the potential for Bitcoin ETF applications from significant asset management firms is also growing.

She states:

“This is an official declaration of a bull run, and there may be additional price increases in the upcoming weeks.”

Meanwhile, laws may also have an impact on Ethereum’s price in the future; although favorable developments may encourage investment, harsher laws may provide risks. Important factors also include investor sentiment and the state of the economy.

It’s unclear if ETH will overtake Bitcoin in market valuation; this will depend on things like adoption rates and network improvements. Right now, Bitcoin is in the lead with a far larger market capitalization.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock

In a remarkable surge, Bitcoin’s price has soared past the $41,500 mark, fueled by a confluence of factors ranging from market anticipation of a Bitcoin spot ETF to broader financial trends. Here’s a detailed analysis of the key reasons behind this rally:

#1 Spot Bitcoin ETF: The Anticipation Game

The buzz around the approval of a spot Bitcoin ETF remains probably the most significant driver of the recent price surge. Although there hasn’t been a specific update, the market anticipation is palpable, with a FOMO effect kicking in. Last week, Bloomberg analyst James Seyffart suggested that a spot ETF is likely to be approved between January 8 and 10, causing the market to react.

Renowned Bitcoin analyst Willy Woo mirrored the anticipation with this statement, “It’s very likely we are on the eve of a Bitcoin spot ETF. The first commodity ETF was SPDR Gold Trust. It provided a simple way for investors to access gold in their portfolio. When it launched gold went on to an 8 year rally with no single down year between 2005 – 2012.”

#2 Gold’s Meteoric Rise And Its Correlation With BTC

The unexpected rise of gold, surging by 3.5% in just 30 minutes to a new all-time high on a Sunday afternoon, may have also had repercussions for Bitcoin. This rapid ascent in gold’s value could signal more than just market fluctuations; it could reflect deeper economic shifts that have direct implications for Bitcoin.

Crypto Analyst @TheFlowHorse remarked, “Unless someone is getting carried out right now after shorting Gold, this is saying something important. Gold doesn’t just arbitrarily rip on a Sunday like this unless it means something.” Tom Crown, founder and CEO of Crown Analysis, added, “Something VERY BIG is coming tomorrow. Gold just BLASTED past all-time highs on a Sunday night. Someone knows something.”

#3 Bitcoin Short Squeeze

The liquidation of $65.15 million in Bitcoin short positions, according Coinglass data, has further propelled Bitcoin’s price. The short squeeze, combined with strong spot demand, has been a key factor. Crypto analyst Skew noted, “Another big short squeeze pushing price above $40K. Slight perp premium on Binance during the squeeze, indicating spot selling into the short squeeze.”

#4 Whales And Institutional Buyers

The current surge in Bitcoin’s price has been significantly influenced by whales and institutional buyers. Market analyst Skew pointed out their impact, stating, “Someone is still aggressively chasing price here. More importantly if said large market entity actually allows some bids to get filled or not. IF filled then expected for them to push the price higher. Clearly $40K is the price for institutional players.”

Keith Alan, co-founder of Material Indicators, further emphasized the role of these large holders, tweeting, “Bitcoin Whales just blasted through $40k.” His statement underlines the significant influence whales have in driving up Bitcoin’s price. He added, “Locking in some profit here. $42k is a high probability, but definitely not guaranteed.”

Additionally, GreeksLive, a trading tools provider, noted the broader market trend, stating, “Bitcoin broke through $41,000, Ethereum broke through $2,200… The giant whale once again showed a sense of smell before the market.”

December saw a rise beyond expectations, bitcoin broke through $41,000, ethereum broke through $2,200, and continued to rise almost without retracement.The giant whale once again showed a sense of smell before the market, from last week to re-add positions in the block call,… https://t.co/EO6MddoNXX pic.twitter.com/ekD4LiLExs

— Greeks.live (@GreeksLive) December 4, 2023

#5 Liquidity: The Underlying Force

The surge in Bitcoin’s price is also significantly influenced by global liquidity conditions, a factor often overlooked but crucial in understanding BTC and cryptocurrency market dynamics. Zerohedge highlighted the scale of this influence in a post: “In November, central banks added $350BN in liquidity, the third-largest increase since March.”

This massive injection of liquidity by central banks around the world plays a pivotal role in asset price movements, including cryptocurrencies like Bitcoin. David Marlin, CEO of Marlin Capital, pointed out the significance of this trend in financial conditions, “US Financial Conditions eased 90 bps in November, the largest monthly easing on record (dating back to 1982).”

Adding to this narrative, cryptocurrency expert Charles Edwards commented on the historic nature of this easing, saying, “November saw the largest easing in over 40 years!” Such a significant easing of financial conditions suggests a highly conducive environment for investment in assets like Bitcoin, which are seen as hedges against inflation and currency devaluation.

Arthur Hayes, founder of BitMEX, summed up the sentiment by stating, “Eye on the prize. RRP balances continue to fall and BTC continues to pump. Yachtzee!!!”

At press time, BTC traded at $41,505.

Ethereum price jumped above the $2,100 level and cleared $2,200. ETH is gaining pace and might surge further above the $2,220 level.

Ethereum is showing a lot of positive signs and recently cleared the $2,200 resistance.
The price is trading above $2,150 and the 100-hourly Simple Moving Average.
There is a connecting bullish trend line forming with support near $2,190 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend its rally if it clears the $2,220 resistance zone.

Ethereum Price Jumps 5%

Ethereum price remained well-bid after it settled above the $2,000 level. ETH gained bullish momentum and cleared the $2,120 resistance. The bulls even pumped it above the $2,200 level, like Bitcoin above $40,000.

A new multi-month high was formed near $2,229 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the $2,147 swing low to the $2,229 high. There is also a connecting bullish trend line forming with support near $2,190 on the hourly chart of ETH/USD.

Ethereum is now trading above $2,180 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $2,220 zone.

The first key resistance is near the $2,250 level. The next resistance sits at $2,320. A clear move above the $2,320 level could send the price toward the $2,450 resistance zone.

Source: ETHUSD on TradingView.com

The next resistance is near $2,500, above which the price could aim for a move toward the $2,650 level. Any more gains could start a wave toward the $2,800 level.

Are Dips Supported in ETH?

If Ethereum fails to clear the $2,220 resistance, it could start a downside correction. Initial support on the downside is near the $2,190 level and the trend line.

The next key support is $2,165 or the 76.4% Fib retracement level of the upward move from the $2,147 swing low to the $2,229 high. The main support is now near $2,120. A downside break below $2,120 might start a steady decline. The key support is now at $2,050, below which there is a risk of a move toward the $2,000 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $2,165

Major Resistance Level – $2,220

Bitcoin Cash price rallied over 10% and broke the $245 resistance. BCH is now facing strong resistance near the $255 zone.

Bitcoin cash price started a fresh surge above the $232 resistance.
The price is trading above $245 and the 100 simple moving average (4 hours).
There was a break above a key bearish trend line with resistance near $225 on the 4-hour chart of the BCH/USD pair (data feed from Kraken).
The pair could continue to move up if it clears the $255 resistance zone.

Bitcoin Cash Price Rallies Above $250

After forming a base above the $220 level, Bitcoin Cash price started a steady increase. It broke the $225 resistance to enter a positive zone, like Bitcoin and Ethereum.

There was a break above a key bearish trend line with resistance near $225 on the 4-hour chart of the BCH/USD pair. There was a strong increase above the $232 and $245 resistance levels. The price is up over 10% and it is now testing the $255 resistance.

BCH is now showing positive signs above $245 and the 100 simple moving average (4 hours). It is also above the 23.6% Fib retracement level of the upward move from the $219 swing low to the $255 high.

Source: BCH/USD on TradingView.com

The price is now struggling to clear the $255 resistance. To continue higher, the price must settle above $255. The next major resistance is near $265, above which the price might accelerate higher toward the $280 level. Any further gains could lead the price toward the $300 resistance zone.

Fresh Drop in BCH?

If Bitcoin Cash price fails to clear the $255 resistance, it could start a fresh decline. Initial support on the downside is near the $245 level.

The next major support is near the $232 level or the 61.8% Fib retracement level of the upward move from the $219 swing low to the $255 high, where the bulls are likely to appear. If the price fails to stay above the $232 support, the price could test the $225 support. Any further losses could lead the price toward the $220 zone in the near term.

Technical indicators

4-hour MACD – The MACD for BCH/USD is gaining pace in the bullish zone.

4-hour RSI (Relative Strength Index) – The RSI is currently in the overbought zone.

Key Support Levels – $245 and $232.

Key Resistance Levels – $255 and $265.