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Bitcoin price is trading at $42,949 while fluctuating within the $24,500-$43,000 bracket – a pattern it has observed for several days. A shift in equilibrium is anticipated with the opening of the US stock market as experts anticipate Bitcoin ETF volumes to improve and help steady prices across the board.
Meanwhile, investors have swiftly shifted gears toward the upcoming Bitcoin halving, which will see miner rewards halved, reducing the circulating supply. With this supply crunch in mind, Bitcoin could pave the way for the next bull run, positively impacting the prices of all cryptocurrencies
Analyst Predicts Short-Term Trend for BTC Following Market Sell-Off
Following the recent downturn in the cryptocurrency market, the well-known analyst Capo Of Crypto has offered an optimistic forecast for Bitcoin (BTC). In the aftermath of the sell-off, the market has seen a reset in funding rates and the formation of a lower time frame bottom pattern, which are traditionally indicators of potential growth.
$BTC plan
After the other's day sell-off, fundings got reset and the price formed a ltf bottom pattern. There's a lot of liquidity above the last high, so 50k is still possible before reversal.
Also, altcoins look like they are going to pump.
Ltf bullish. Then bearish again. pic.twitter.com/YQ5xkkUI7k
— il Capo Of Crypto (@CryptoCapo_) January 16, 2024
The analyst foresees Bitcoin potentially reaching $50,000, propelled by substantial liquidity above its recent peak. However, caution is advised as this upward trend may be fleeting, with a swift return to bearish conditions anticipated. This prediction suggests a short-lived bullish window before the market reverts to prevailing downtrends.
BTC Technical Indicators and Potential Movements
The next significant resistance level for Bitcoin is around the $45,000 mark. A decisive break above this could steer Bitcoin towards $47k and potentially even the $50k threshold. However, failure to surpass the $45,000 resistance might trigger a downward trend. The initial support level lies around $40,000, with potential declines testing the $35,000 support zone in the near term
On the contrary, the Moving Average Convergence Divergence (MACD) indicators display a positive outlook, with both the MACD and signal lines hovering above the zero line. This typically signals a bullish momentum. However, a contrasting signal is seen as the 20 Exponential Moving Average (EMA) has recently crossed below the 50-EMA. This cross is generally perceived as a bearish indicator, applying additional downward pressure on Bitcoin’s price.
Complementing these indicators, the Chaikin Money Flow remains neutral, reinforcing the short-term bearish trend. These mixed signals create a complex landscape for Bitcoin as market participants weigh these diverse technical indicators. The Relative Strength Index is currently hovering around 40 levels, indicating a neutral market.
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