Bitcoin price has been very volatile over the past five weeks, suggesting that market participants are waiting for spot Bitcoin ETF approval. Although there are significant fluctuations on the daily chart, the price action remains within a channel pattern that suggests a shallow recovery. So this pattern could predict the short-term future of this asset.
Will Bitcoin Price Cross $50,000 in January?
- BTC price may remain sideways until the channel pattern is intact.
- A bullish breakout from the upper trendline will strengthen buying momentum.
- Bitcoin's intraday trading volume is $17.4 billion, a loss of 15%.
Bitcoin price| TradingView chart
The recovery trend in leading cryptocurrency Bitcoin began to lose momentum in December 2023, causing the price to move almost sideways below $45,000. This consolidation could be due to the uncertainty surrounding the approval of spot Bitcoin ETFs.
A look at the daily chart shows that the consolidation has developed into a channel pattern consisting of two parallel trendlines. The coin price bounced back from this dynamic resistance several times and the support suggests that traders have taken close note of this structure.
At press time, Bitcoin price was at $44,333 with an intraday gain of 0.4%. Additionally, the US Securities and Exchange Commission (SEC) is showing signs of progress in approving the first US spot Bitcoin ETFs, as evidenced by the filing of amended 19b-4 filings by several exchanges.
Therefore, BTC price is more likely to break the upper trendline, which would signal the upcoming directional recovery. The recovery after the breakout could push prices to $52,100 and then to $60,000.
Alternatively, a break below the lower trend line would signal a new correction phase.
Long-term vision: Over 30% of Bitcoin remains unchanged in 5 years
According to recent findings from IntoTheBlock, over 30% of total Bitcoin supply has not moved in more than five years, highlighting a significant trend in the cryptocurrency market: long-term holding or “HODLing.” This on-chain statistic suggests that a significant number of Bitcoin investors are not just short-term traders, but believe in the asset's value over the long term. They choose to hold on to their Bitcoin despite various market fluctuations, indicating that they strongly believe in its future potential.
- Bollinger Band: A narrow range of Bollinger Band indicators reinforces the uncertain market sentiment.
- Relative Strength Index: A bearish divergence in the daily RSI slope, evidenced by the formation of lower lows, reflects a weakening of bullish momentum.
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