Bitcoin Above 35000 Indicates Bull Run. Time to Buy?

• Bitcoin recent rally is notable, with an 18-month high.
• Over 78% of BTC holders make a profit on their purchases.

2023 has proven to be a year of fluctuation in the cryptocurrency market, characterized by both significant gains and notable declines, largely influenced by bearish trends. But in Q4, the bulls displayed exponential strength, with Bitcoin, the largest cryptocurrency, leading the way. Just a week ago, BTC reached an 18-month high, fueling excitement within the community that Bitcoin could reach new heights in the coming year.

Currently, BTC is experiencing some volatility and is trading within the range of $34,546 to $35,892. Over the past 24 hours, it saw a modest 1% increase, accompanied by a significant 42% surge in trading volume. Notably, it has witnessed an impressive 27% surge over the past 30 days.

Meanwhile, the anticipation of a Bitcoin ETF has been growing among the community, and recent news about Hong Kong’s interest in ETFs has added to the excitement. Hong Kong is actively positioning itself as the premier digital asset hub for the Asia-Pacific region. Reports suggest that this special administrative region of China is considering allowing retail investors to access crypto-related exchange-traded funds (ETFs).

Responding to this news, BitMEX co-founder Arthur Hayes shared his enthusiasm on X on Nov. 6, emphasizing that the competition between the two economies would ultimately benefit Bitcoin. He wrote, “Competition is amazing. If the U.S. has its proxy asset manager, BlackRock, launching an ETF, China needs its proxy asset manager to launch one, too.”

Furthermore, Bitcoin transaction fees have reached their highest levels in nearly six months. Additionally, data from IntoTheBlock indicates that over 78% of BTC holders are currently realizing profits on their purchases.

Can the Bitcoin Bull Momentum Continue?

An analysis of Bitcoin’s recent price movements reveals an overall bullish trend on the daily chart. The 9-day exponential moving average (EMA) is currently below the trading price at $34,896. Furthermore, the daily relative strength index (RSI) stands at 76, suggesting an overbought condition.

BTC Price Chart, Source: TradingView

Bitcoin recently found support at the $34,650 level after facing resistance around $35,820. If the price manages to break through the $35,470 resistance level, it will likely retest the $35,820 mark. However, should the price dip below the $34,650 level, it may decline further to test the $34,190 support level.

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