Bitcoin price surpassed the $35,000 mark for the second time this week before facing a reversal as sell orders increased. According to hedge fund manager Charles Edwards, this resistance level might result in consolidation below $35,000 for a while. Edwards also points out the growing selling pressure from Bitcoin miners as a potential warning sign for consolidation. However, he remains optimistic that Bitcoin could target the $40,000-$45,000 range in the coming weeks once sell pressure subsides.
Bitcoin’s 17-Month High and ETF Anticipation
The largest cryptocurrency by market capitalization reached a 17-month high on Monday. This surge was driven by the anticipation for a spot bitcoin exchange-traded fund (ETF). Although reports of an imminent approval for a spot ETF turned out to be incorrect, Bitcoin has only experienced a modest retreat from its recent high.
Bitcoin Outperforms U.S. Stocks
Despite pulling back around 2% following the $35,000 level, Bitcoin still outperformed U.S. stocks. The Nasdaq was down 2.4%, while the S&P 500 declined by 1.4%. This drop in stocks coincided with an increase in the 10-year Treasury yield and concerns over poor Q3 earnings from Google. Geopolitical tensions also contributed to the market decline, with Turkish President Tayyip Erdogan’s remarks about Hamas further impacting the market.
Factors Affecting Bitcoin Price
Several factors have been influencing the Bitcoin price in recent times. One major factor is the anticipation of a spot bitcoin ETF, which has driven the price to new heights. However, the incorrect news about its imminent approval led to a slight decline in the price.
Another factor affecting the Bitcoin price is the selling pressure from miners. Increased sell orders from miners can lead to consolidation and a potential warning sign for the cryptocurrency. Nevertheless, Charles Edwards remains optimistic about the future growth of Bitcoin and believes that the price could reach the $40,000-$45,000 range in the coming weeks.
Market Reactions to Geopolitical Tensions
Geopolitical tensions have been playing a significant role in the fluctuations of the global market. The recent remarks by Turkish President Tayyip Erdogan about Hamas have contributed to the decline in stocks. These tensions can also impact the Bitcoin price, as investors may seek safer investment options during uncertain times.
Bitcoin’s Future Prospects
Despite the current consolidation and selling pressure from miners, experts like Charles Edwards believe that Bitcoin has a bright future ahead. With the potential for the price to reach the $40,000-$45,000 range in the coming weeks, investors may continue to show interest in the cryptocurrency.
In conclusion, the Bitcoin price has experienced some fluctuations recently, with the cryptocurrency surpassing the $35,000 mark twice this week before facing a reversal. Although selling pressure from miners and incorrect news about a spot ETF have impacted the price, experts remain optimistic about Bitcoin’s future growth. With the potential to reach the $40,000-$45,000 range in the coming weeks, Bitcoin continues to be an attractive investment option for many.
