Bitcoin Price Prediction as BTC Gets Rejected From $38,000 Level – Time to Buy the Dip?
The Bitcoin (BTC) price is pulling back aggressively after once again rejecting resistance at the $38,000 level earlier on Thursday.
BTC was last changing hands in the $36,300s, down more than 4% on the day, but still well within this week’s $35,000-$38,000 ranges.
Bitcoin’s failure to break higher comes after the SEC delayed its decision on an application from Hashdex to convert its Bitcoin futures exchange-traded fund (ETF) into a spot Bitcoin ETF.
Some traders had perhaps been hoping the SEC might have given this application and a batch of other spot Bitcoin ETF applications, such as from the likes of BlackRock and Ark Invest, the green light this week, hence the intra-day selling.
But most analysts would agree that the SEC looks odds on to approve a batch of spot Bitcoin ETFs by early 2024, so optimism about an influx of capital inflows into the Bitcoin market in 2024 is likely to continue supporting prices for the foreseeable future.
With Bitcoin having backed off now nearly 5% from its annual highs near $38,000, investors will be asking whether now is a good time to buy the dip.
Fundamental analysis suggests it could be.
As already noted, despite Thursday’s SEC delay, optimism is set to remain high that spot Bitcoin ETFs will soon gain approval in the US.
Moreover, macro is acting as a major tailwind for crypto this week, with US stocks pumping and the US dollar and US yields pulling aggressively lower.
Those moves in traditional assets come as macro investors ramp up bets that a US Federal Reserve cutting cycle is coming in 2024 in wake of weaker-than-expected US inflation data for October, which came on the heels of soft US jobs and manufacturing data released earlier in the month.
Dovish policy pivots from the Fed (i.e.
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