Published: Nov. 24, 2023 at 11:38 a.m. ET
Crypto bulls are aiming to reach $40,000 as bitcoin’s next level, spurred on by a market rally that has seen the crypto reach a new high for the year. The news that Binance’s co-founder Changpeng Zhao pleaded guilty to criminal charges relating to U.S. anti-money-laundering laws, and his subsequent stepping down as head of the company, has had little effect.
CoinDesk data reveals that the largest crypto, BTCUSD, rose to as high as $38,294 on Friday – the highest level since May 2022 – and was up 3% over the past 24 hours. Bitcoin is up 127% so far this year, though still down 44.5% from its peak in 2021.
Optimism that a bitcoin exchange traded fund may be approved soon in the U.S., along with the market’s outlook on the Federal Reserve’s interest rate policy and the U.S. dollar, appears to be supporting bitcoin’s recent strength. James Harte, analyst at Tickmill Group, suggests that risk assets such as BTC are well-positioned to gain further against a softer U.S. dollar.
From a technical perspective, Harte notes that while BTC holds above the $34755 level, $39860 is the next target for bulls. Alex Kuptsikevich, senior market analyst at FxPro, suggests that the chances of the price rising by another $2.5K and exceeding the $40K level are higher than the chances of it falling by the same amount to $35K.
CoinDesk data also shows that Ether, ETHUSD, rose to $2,131 on Friday, close to a local high reached on Nov. 10. Kuptsikevich suggests that a break through the $2135 level will set up the main scenario of a 161.8% growth, which in this case is close to $2500. Ether has gained 75% so far this year, though is still down 56.4% from its all-time high in November 2021.
Coinbase’s shares, COIN, rose 5.8% to $115.78 late morning Friday, on pace to its highest close since May 4, 2022, according to Dow Jones market data. The company’s shares are up 226.34% year-to-date, on track for best year on record.
