In a surprise move, the world’s largest cryptocurrency Bitcoin has displayed a strong trend reversal with the BTC price shooting all the way to $38,000 on Wednesday. This is the first time in the last 18 months since May 2022 that Bitcoin has achieved these price levels.

SEC Delays Bitcoin ETF Approval

This development comes despite the US SEC delaying its decision to approve the spot Bitcoin ETF.  The introduction of ETFs would simplify access to Bitcoin for both institutional investors and individual retail investors. This could lead to a massive influx of funds in the asset class.

Bitcoin has gained approximately 6% in the last 24 hours, reaching $37,843 as of press time. This extends its year-to-date recovery from a 2022 decline to 129%. On the other hand, altcoins, including the second-ranked Ether, also experienced upward movement.

But then what’s causing this rally in the Bitcoin price? Analysts believe that the Federal Reserve is almost done with its rate hike cycles which could be a major boost to the crypto prices. In a note to investors, Zach Pandl, managing director of research at crypto fund provider Grayscale Investments LLC wrote:

“The recovery in crypto valuations can continue if real interest rates peak and we continue to see progress toward spot ETF approvals in the US market”.

An enigma for investors revolves around whether the surge in Bitcoin this year has already factored in the anticipated effects of spot ETFs. The approval might be “priced in,” but the crucial question is the extent of inflows that the ETFs will generate, say several market analysts.

Where is the BTC Price Moving Next?

Well, Bitcoin is exhibiting a good amount of volatility after facing a selling pressure at $35,000 earlier this week. The BTC price is now above its crucial support levels of $36,000 and so analysts believe that it can rally further all the way to $43,000 and above in the coming weeks.

As long as #BTC holds ~$36000 (blue) then there’s a good chance Bitcoin will revisit ~$43100 (orange) in the coming weekshttps://t.co/ih6yATqKZv$BTC #Crypto #Bitcoin pic.twitter.com/mQUIkiUhl9

— Rekt Capital (@rektcapital) November 15, 2023

Furthermore, on-chain data shows that the Bitcoin network activity is showing good strength. As per Santiment, Bitcoin’s NVT (Network Value to Transaction) ratio has experienced a notable improvement, marking it as one of the key alpha crypto market signals for traders. This metric assesses the health of the circulating unique $BTC amount relative to current market cap levels.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.