Where Will Bitcoin Price Head in January 2024, $50k or $35k?
The crypto market has been highly volatile since the onset of 2024 mainly wavering to the market sentiment toward spot Bitcoin ETFs. On January 3rd, a majority of major cryptocurrencies witnessed a significant sell-off as Matrixport recently emphasized in a report that the U.S. Securities and Exchange Commission (SEC) might deny the approval of spot Bitcoin Exchange-Traded Funds (ETFs).
The leading cryptocurrency Bitcoin(BTC) currently trades at $43650 with an intraday loss of 1.5%
Rumors on Spot Bitcoin ETF Approval on Friday
The cryptocurrency community is abuzz with speculation regarding the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Social media platforms, particularly X(Formerly Twitter), have been a hotbed for discussions and rumors about this possibility.
Despite this enthusiasm, several analysts and industry experts have cautioned against too much optimism. According to a recent post by Eric Balchunas, a Senior Bloomberg ETF analyst, the SEC is currently providing final comments. Following this, issuers are expected to submit their final 19b-4 and S-1 forms, essential for the ETF’s approval. While this development signals progress, Balchunas clarifies that there’s no official approval yet.
Can Bitcoin Price Resume Recovery?
- There’s intense speculation on social media about the SEC approving a spot Bitcoin ETF on Friday
- A bullish breakout from the daily channel pattern is needed to trigger a directional rally.
- The intraday trading volume in Bitcoin is $34.8 Billion, indicating an 18.59% gain.
Despite the increasing uncertainty in the crypto market, the technical chart shows the Bitcoin price is resonating according to the development of a rising channel pattern. Over a month, the coin price has rebounded several times from two trendlines of this chart pattern indicating the traders have taken strict note of this pattern.
Until this pattern is intact, the BTC price may waver in uncertainty awaiting a better response from the SEC for spot Bitcoin ETFs approval. If the bullish sentiment triggers an upside breakout from the overhead resistance, the buyers will obtain suitable support to prolong its recovery.
The post-breakout rally would likely surge the Bitcoin price 20% higher from the current price to hit the next significant resistance at $52000-52200.
Is BTC Price at Risk of New Correction?
While the market outlook for Bitcoin remains bullish, the current uncertainty and a warning from Matrixport have created alternative speculation in the market. Thus, if the coin breaks below the lower trendline, the selling pressure will intensify and may trigger a correction to $40300, followed by $38000 and $35400.
- Bollinger Band: A downswing in the upper boundary of the Bollinger Band Indicator hints weakness of bullish momentum
- Relative Strength Index: The RSI slope above 50% reflects the overall market sentiment remains bullish.
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