Analysts point to numerous factors that suggest a possible extension of the upward trend in the short term, considering the current situation as much more favorable than that experienced in 2021.
Despite this positive trend, not everyone has experienced good results.
He Bitcoin and other cryptos register changes this Thursday, although the largest cryptocurrency by market capitalization maintains most of the gains from a rally that has supported prices significantly in recent days. Multiple factors continue to support the momentum behind digital assets.
The price of Bitcoin remains practically unchanged during the last 24 hours at US$43,750, after having traded above US$44,000 previously, being the highest price of the main cryptocurrency from April 2022, before cryptos plunged into a brutal and prolonged bear market. Bitcoin is up two-thirds since mid-October, ending a period of quiet trading for several months and generating expectations of a new bull market in cryptocurrencies.
Several factors support the rise of Bitcoin up to 20 monthsincluding optimism that US regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF), which is expected to drive new interest from investors. Expectations that interest rates will fall significantly next year have helped, a trend that has also supported the stock market in recent weeks, although Bitcoin has outperformed the Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX).
With strong technical support in the market and amid a historically low token supply, Analysts See More Strength in Bitcoinas long as the numerous cryptocurrency traders who have bought and held the digital asset can resist taking profits after such a steep rise.
In addition to Bitcoin, Ether (ETHUSD), the second largest cryptocurrency, falls 1% to $2,250. Smaller cryptocurrencies or altcoins are showing stronger, with Cardano up 3% and Polygon up 2%. Memecoins, for their part, are weaker after outperforming earlier in the week, with Dogecoin (DOGEUSD) falling 7% and Shiba Inu losing 4%.
Bitcoin: Will this bullish trend persist?
Analysts point to numerous factors that suggest a possible extension of the bullish rally in the short term, considering the current situation as much more favorable than that experienced in 2021.
It is crucial to remember that in November 2021, Bitcoin peaked around $69,000. However, this was followed by a decline to $16,000 about a year ago, in November 2022.
Despite this positive trend, Not everyone has experienced good results. Short sellers in the cryptocurrency industry have suffered losses amounting to more than $6 billion this year.
This is because, in September of this same year, when the value of Bitcoin was around $25,000short sellers anticipated a slowdown in what they considered an overbought market and increased their positions accordingly. However, the reality was opposite: Bitcoin experienced significant growth, reaching a new annual high on December 5.
Source: Ambito
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