The crypto market is taking a break from last week's rally Bitcoin (BTC) reach almost $45,000 and Ethereum $2,400. Investor optimism was at an all-time high as experts like Bloomberg Exchange Traded Fund (ETF) analyst Eric Balchunas predicted that the Securities and Exchange Commission (SEC) would approve spot Bitcoin ETFs in January.
However, as is usual with major events, the rally cools down before the main development. It is possible to buy rumors and sell news.
However, the approval of a spot Bitcoin ETF could be a game-changer as it would serve as a conduit for new money to flow into the market, followed by a major breakout.
If the market reacts similarly to the approval of futures Bitcoin ETFs in 2021, which triggered a price movement of more than 60%, the entire market could flourish.
Bitcoin price offers an opportunity to buy the decline
Bitcoin price has declined to $41,808 over the past two days as traders book profits ahead of the next move that is likely to break the $50,000 resistance. The 21-day Exponential Moving Average Convergence (EMA) (blue) is stabilizing BTC at $40,654, but if declines below $40,000 continue, the 50-day EMA (red) will settle at $37,585 prove useful.
Bitcoin price chart | Trading view
Buying Bitcoin in December should be a calculated move, either short-term or long-term. Short-term speculation should be tied to the BTC spot ETF, while long-term investors may want to base their buying on pre- and post-halving rallies that could push Bitcoin to a new all-time high.
It might be wise for traders to wait until Bitcoin confirms a recovery before taking new long positions. A sell signal from the Moving Average Convergence Divergence (MACD) indicator suggests that BTC could lose even more ground before the year-end rally begins.
Shiba Inu price signals breakout
Shiba Inu (SHIB) price briefly broke $0.00001 last week. After rising to highs of $0.0000105, SHIB began to decline along with other altcoins.
The second-largest meme coin, trading at $0.00009569 on Tuesday, is above the short-term support of the 21-day EMA.
A rebound from this support would seal the deal for the bulls as traders add to the tailwind and take new long positions Shiba Inu.
The bullish crossover consisting of the 50-day EMA (red) and the 200-day EMA (purple) underscores the bullish narrative, with SHIB expected to quickly climb above $0.00001 rather than higher losing ground.
Shiba Inu price chart | Trading view
Slightly above the crucial level of $0.00001, Shiba Inu would face more resistance at the double top pattern as shown on the chart. SHIB broke out of the previous uptrend at $0.0000105 (double top), so the next attempt must be strong enough to overcome the seller congestion and pave the way for the next target at $0.00002.
Shiba Inu maintains a generally bullish outlook in December, which could worsen in 2024, especially given the positive sentiment surrounding the possible approval of Bitcoin spot ETFs.
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