Economist and crypto currency analyst Alex Krüger expects the rise to continue with the possibility of a green light being given to a Bitcoin exchange-traded fund (ETF) in the United States. According to the analyst, the largest cryptocurrency, Bitcoin (BTC), will reach the critical level of $42,000 after the spot Bitcoin ETF is approved and starts trading.
Krüger, the financial advisory firm Asgard Markets published a new blog post stating that the largest crypto asset is expected to increase by over 24% when the spot Bitcoin ETF is launched. The blog post also mentioned that the U.S. Securities and Exchange Commission (SEC) is expected to approve an ETF by January 2024, triggering a major rally in Bitcoin. The post noted the following:
We believed that the ETF would be approved with a 50% probability and that the SEC would approve it by January 10 (exactly in January). We also expected the market to price in the approval about a month and a half ahead, but the pricing has already begun.
Considering the significant movement last week, we believe it would make sense for BTC to consolidate for a few days in the range of $30,000 to $32,000 before continuing its upward trend. Any drop towards $29,000 would create a buying opportunity. We also believe that on the day the ETF is approved, the market should see a 20% movement within the same day. When the ETF is launched (starts trading), we expect Bitcoin to reach $42,000.
Significance of $42,000 Level for Bitcoin
Krüger highlighted that the $42,000 threshold is an important Fibonacci retracement level and has also acted as a key level during China’s crypto ban in 2021:
I am a big fan of Fibonacci retracements and expansions, also known as astrology for men. $42,000 is not only an important Fibonacci retracement level for BTC, but also a level that played a key role during the China ban in 2021.
