This surge is fueled by optimism surrounding the potential approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) on the stock market.
In a note dated November 30th, Matrixport predicts that Bitcoin will surpass $60,000 by April next year and reach $125,000 by the end of 2024. Matrixport explains that historically, Bitcoin experiences price increases during the years of its halving events.
Bitcoin is expected to undergo another halving, reducing mining rewards by 50%, in mid-April 2024. With mining companies tending to accumulate Bitcoin ahead of each halving event, the price has historically surged by 200%, leading to a projected value of $125,000 for Bitcoin.
From a technical analysis perspective, Bitcoin’s Relative Strength Index (RSI) indicates a strong upward trend, with the RSI approaching the overbought zone. Additionally, the short-term moving average continues to provide support at the $35,000 price level.
Related: Weekly Crypto Market Watch: Top Tokens Gainers And Losers
In terms of on-chain analysis, activity on the Santiment platform reveals that despite recent price increases, the number of active addresses remains stable. On December 2nd, there were approximately 5.3 million active addresses, compared to nearly 3.5 million the day before.
Currently, the figure stands at 5.2 million active addresses, suggesting that the rise in Bitcoin’s value has not yet translated into an increase in active transaction addresses.
Transaction volume also fails to show significant growth, hovering around $15.8 billion and maintaining a steady trend. A breakthrough above the $40,000 price range could potentially trigger more reactions in both active addresses and transaction volume.
