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After spending much of 2023 stuck near $30,000, bitcoin broke above $40,000 last weekend and has remained above that level for much of this week. Now the next stop could be close to $50,000. Bitcoin has been moving more quickly and persistently for several weeks, notching new 2023 highs more frequently. After beginning November at about $34,000, it’s kicked off December above $40,000 for the first time since April 2022 and is already up 16% for the month already. Chart analysts say the next level of resistance to watch is at about $48,000. “Bitcoin seems to shoot past each resistance level we identify,” said Rob Ginsberg, chart analyst at Wolfe Research. “$48,000 is next on the list. As momentum turns positive again and overbought conditions remain sticky, we feel that level also puts up little fight.” Other analysts identified similar levels. Julius de Kempenaer, senior technical analyst at StockCharts.com, is also eyeing $48,000 as the next level up. Will Tamplin, senior analyst at Fairlead Strategies, called it $48,600 – if bitcoin can successfully close above $42,200 two weeks in a row. On the downside, as a group the analysts are looking at a new support level of about $38,000. The price of bitcoin has continued to climb in recent weeks in large part on optimism surrounding a bitcoin ETF, which would lead to more maturation and institutionalization of the crypto asset class. Specifically, hype is growing as ETF issuers like BlackRock and Grayscale meet with the Securities and Exchange Commission – which has been rejecting bitcoin ETF applications for 10 years – and implement agency feedback into updated filings. “Whether it’s the macro backdrop, ETF excitement, geopolitical developments, FOMO or all the above, there is simply a level of momentum propelling these moves that we have not seen in awhile,” Ginsberg said, referencing the “fear of missing out.” “Bitcoin is out to 20-month highs relative to the top stocks in the market,” Ginsberg said. “We see this ratio pushing higher into year end as the likes of the Mag 7 continue to cool off and [cryptos] stay hot.” The so-called Magnificent 7 stocks are Apple, Tesla, Nvidia, Meta Platforms, Microsoft, Alphabet and Amazon.com. “We’ll be closely monitoring how much steam this rally has left,” he added. “For the time being, it looks like there’s plenty.” —CNBC’s Michael Bloom contributed reporting
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