Bitcoin Surges to $40,000, Fueled by Financial Policies and Spot ETF -

Standard Chartered Bank released a report confirming its previous forecast that Bitcoin will reach $100,000 by 2024. The supporting factors include the approval of a Bitcoin ETF in the first quarter of 2024 and the occurrence of Bitcoin Halving.

Microstrategy has purchased an additional 16,130 BTC, valued at approximately $593.3 million at a price of $36,785 per BTC. This brings their total holdings to 174,530 BTC, worth more than $6 billion.

Pando Asset, a Swiss asset management company, has filed documents to seek approval for the establishment of the Pando Asset Spot Bitcoin Trust, a spot Bitcoin ETF, with the U.S. SEC. This marks the 13th application for approval, and analysts expect it might receive approval later than other applicants who applied at the same time.

Grayscale has hired ETF experts from Invesco, a well-known investment management company, for a period of 6 weeks before the U.S. SEC decides whether to allow Grayscale to convert its Bitcoin Trust into a Spot ETF.

JPMorgan released an analysis stating that despite signs of recovery in DeFi and NFT, it is still too early to say that they have returned to levels seen before the crypto market downturn. Meanwhile, Ethereum has not benefited as much as it should have from the recent recovery in DeFi and NFT.

The total trading volume on the Solana chain was at the level of $240 million per day in early December, which is higher than the chains of Polygon and Optimism combined. Additionally, the Total Value Locked of Solana increased by more than 60%, and the price of SOL \increased by 45%. However, the transaction value still lags behind Arbitium.

Weekly Technical Analysis: 5-11 December 2023

Bitcoin (BTC)

BTC surged to the $40,000 level. However, at the price levels of $41,000-$42,000, there is significant resistance. It’s expected that there might be a consolidation, but if a Bitcoin ETF is confirmed during this period, the price could surge to a high of $48,000. Nonetheless, price levels above $40,000 are considered risky for potential strong corrections, possibly dropping to as low as $28,000. Stay closely updated.

Support: 1,360,000 THB, Resistance: 1,460,000 THB

Support: 36,000 USD, Resistance: 42,000 USD

Ethereum (ETH)

ETH has risen following BTC, with a resistance level at $2,200, where the price might retract. Overall, ETH has more upside potential than BTC as it has been relatively slower in its movements.

Support: 75,000 THB, Resistance: 80,000 THB

Support: 1,900 USD, Resistance: 2,500 USD

Terra Classic (LUNC)

LUNC increased by 112.9% over the past week. However, this rise is considered fragile as it is more driven by speculative forces than fundamental changes, hence caution is advised in trading. First support level at 0.005 THB and short-term profit-taking at 0.008 THB.

Support: 0.005 THB, Resistance: 0.008 THB

Terra (LUNA)

LUNA increased by 34.1% over the past week. The pattern is similar to LUNC, driven more by speculation than fundamental changes. Invest with caution.

Support: 33 THB, Resistance: 40 THB

Trading and Investment Considerations For The Week

The Chairman of the U.S. Federal Reserve spoke about monetary policy, indicating a reduced necessity to raise interest rates again, even though the battle against inflation is not over. The financial market has responded, anticipating no further interest rate hikes, and it is highly probable that the meeting in March 2024 may initiate the first rate cut. This led to gold prices reaching new highs, while the price of Bitcoin surged, marking a new high for the year at $40,000.

Various news and events suggest that there is a high chance of approval for the Bitcoin ETF, which continues to drive the price of Bitcoin. However, the rise to the $40,000 level may lead to a ‘Sell On Fact’ scenario where profits could be taken, hence trading should be approached with caution. Yet, a significant price drop could be seen as an opportunity for long-term investment.

On Friday, December 8, the Non-Farm Payroll figures will be announced. The market expects them to be around 175,000 jobs, higher than the previous month’s 150,000. If the numbers come out lower than expected, it would indicate an economic slowdown, reinforcing the idea that an interest rate hike may not be necessary.

In the following week, there will be a meeting on the monetary policy of the U.S. Federal Reserve. The market still expects the interest rates to remain unchanged. However, it’s important to keep an eye on the inflation figures to be announced beforehand. A significant decrease from the previous month could reinforce the possibility of an early interest rate cut.

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