BTC rallies to $37,900, fuels bullish outlook among Bitcoin traders

• Bitcoin price hit $37,900 for the first time in eighteen months, fueling a bullish outlook among BTC traders.
• The impending BTC spot ETF approval and bullish on-chain metrics are likely drivers of gains in Bitcoin. 
• Bitcoin whale transactions valued at $100,000 noted a spike on Thursday, as the supply on exchanges declined. 

Bitcoin price rallied to $37,900 for the first time in a year and half on expectations that US regulators are moving to approve a spot Bitcoin exchange-traded fund. Sentiment among BTC traders has improved as the US Securities and Exchanges Commission (SEC) peruses 12 Bitcoin ETF applications.

Bitcoin is exchanging hands at $36,683 on Binance at the time of writing. The price of the largest crypto asset by market capitalization has climbed nearly 5% over the past week.

Also read: Bitcoin price targets the $49,000 level as analysts predict approval of BTC spot ETFs by SEC

Daily Digest Market Movers: Bitcoin price resumes climb despite rising whale activity

• Bitcoin price climbed past $37,900 despite an increase in whale transactions valued at $100,000 or higher. 
• Bitcoin price posted nearly 35% gains since the current rally started in mid October. 
• The US SEC could approve some Bitcoin ETF applications before the deadline on January 10 as the comment period for several applicants finished on Wednesday, Bloomberg analysts Eric Balchunas and James Seyffart said in a note. Some approving orders could happen from November 9 to November 17, the analysts said.
• Based on data from crypto intelligence tracker Santiment, large volume transactions peaked on November 8 and climbed past 8,600 early on Friday. 
• Large volume BTC transfers are typically associated with profit-taking, which tends to lead to a price decline in Bitcoin. However, the asset’s uptrend resisted the selling pressure. 

Whale Transaction Count (>$100,000) and BTC price 

• Weighted sentiment among BTC holders, a metric from Santiment that measures sentiment across social media platforms, climbed from -1.97 to 0.95 between November 8 and 9, alongside Bitcoin’s price rally. 

Weighted sentiment and BTC price 

• Bictoin's supply on exchanges has recently fell significantly. According to Santiment data,  BTC supply dropped from 1.32 million on May 10 to 1.07 million on November 10. A decline in supply tends to reduce the selling pressure.

Supply on exchanges and Bitcoin price

Technical analysis: Bitcoin price likely to extend its gains

Bitcoin price is on track to climb higher after posting nearly 5% gains over the past week. The risk asset tapped the resistance at $38,000. Technical analyst, Scott Melker, considers the $38,000 level, the “mother of all resistances.” 

Melker notes that the zone between $38,000 and $40,000 represents the pre-LUNA collapse levels and a rise past $40,000 could erase all contagion of 2022 from Bitcoin’s price chart.

BTC/USD 1-day chart 

Melker considers this an area for profit-taking by traders. 

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