Bitcoin price has witnessed a steady rise and reached a crucial resistance area following the recent SEC ETF approval announcement.
This price range includes the upper boundary of the ascending channel and the static resistance at $48,000, posing challenges to reclaiming this significant level.
Technical analysis
By Shayan
The daily chart
A comprehensive analysis of the daily chart shows a sustained uptrend in the price that is approaching a significant resistance zone. Defined by the upper boundary of the ascending channel and the critical threshold of $48,000, it represents a strong barrier for Bitcoin buyers. A successful breakout of this crucial area could trigger a deep uptrend and potentially a new all-time high (ATH). Reach Bitcoin.
However, if sellers gain control, Bitcoin could enter a period of consolidation correction, with the price falling back towards the significant support area. This support area includes the channel's middle trendline, which coincides with the 100-day moving average at $38,000 and may stop further downside attempts.
Source: TradingView
The 4 hour chart
The 4-hour chart illustrates price consolidation within an ascending flag pattern, indicating a balance between sellers and buyers in this price range. However, the recent bullish sentiment stemming from the ETF approval news has resulted in a renewed uptrend with the aim of breaking the flag's ceiling.
Currently, the price is experiencing increased volatility as buyers and sellers engage in a battle. A successful breakout could pave the way for a renewed and notable upward move.
However, given current market conditions, rejection is still possible, followed by a pullback towards significant support at $38,000, completing a necessary corrective phase before the next impulsive move.
Source: TradingView
On-chain analysis
By Shayan
This chart represents the stablecoins (ERC20) exchange reserve metric and provides insight into participants' risk appetite and potential purchasing power.
The amount of dollar-denominated stablecoins (ERC20) held on cryptocurrency exchanges was around $18 billion at the start of the year and recently increased to $20 billion this week. This $2 billion inflow highlights the flow of capital into the cryptocurrency market and influences the current prices of altcoins.
The increased interest in Bitcoin spot exchange-traded funds (ETFs) is expected to further contribute to the inflow of capital into the overall crypto ecosystem. Although the trend has been declining since the end of 2022, it remained constant throughout 2023.
Source: CryptoQuant
Looking ahead to 2024, there is a clear reversal in trend given the first-ever approval of Bitcoin spot ETFs, indicating a possible increase in risk appetite. This shift could ultimately benefit the digital asset market as a whole.
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Cryptocurrency charts from TradingView.
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