Bitcoin Breaks USD $42K Barrier, Fuelled by Rising ETF Hopes

By Ben Knight December 05, 2023 In Bitcoin, ETF
Source: Adobe Stock
  • Bitcoin has hit a 20-month high, reaching USD $42K.
  • According to Santiment, Bitcoin’s RSI suggests a minor correction may be on the way.
  • Financial institutions Bitwise and BlackRock have filed changes to their spot Bitcoin ETF applications.

Bitcoin’s excellent run reached new heights over the weekend, with the coin hitting a 20-month high upon breaching USD $42K (AUD $63K). This caps off a terrific few months for the digital currency, which has risen from USD $25K (AUD $37K) in September – marking a 68% increase. However, according to Santiment’s technical analysis, the coin may need a cool-down before it can continue on its merry way.

Bitcoin RSI Jumps Into “Red Territory”

Relative Strength Index (RSI) is an extremely popular technical indicator used by traders of all experience levels. At a basic level, the indicator is quite easy to use as it attempts to measure whether an asset is overbought or oversold. According to crypto data analysts Santiment, their measurements have Bitcoin’s RSI sitting at around 76.5, which suggests that a minor BTC correction is on the way.

However, RSI’s simplicity is also its downfall. No one technical indicator should ever be relied upon as a trading signal, and a quick look at Santiment’s graph shows that BTC’s RSI was much higher a month ago – and yet, the price of Bitcoin continued to trend upwards. Combining Relative Strength Index with other indicators can help provide a better picture of Bitcoin’s price movements and help investors make more accurate predictions.

Source: Santiment/ X

New ETF Details Emerge

The announcement of approval for the United States’ first spot Bitcoin ETF appears inevitable, with Bloomberg analyst James Seyffart identifying several amendments made to pending fund applications. Financial companies BitwiseInvest and BlackRock both filed changes to their spot Bitcoin ETF documents, suggesting they have been in communication with the Securities and Exchange Commission (SEC) and are closing in upon approval.


While there is lots of hype around what a spot Bitcoin ETF could do for BTC’s price, it’s worth considering that this news is already priced in. The massive Bitcoin run of the past three months has been fuelled almost exclusively by speculation around a spot Bitcoin ETF. It’s possible that, if short-term price trends post an ETF approval aren’t positive, BTC may actually lose value in the days following. Either way, it’s important to do your own research and not get lost in the hype to ensure you make smart and informed investment decisions.

Ben Knight

Ben Knight

Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.

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