The Bitcoin (BTC) price began in 2024 with a massive increase, reaching above $45,000 for the first time in more than 600 days.
The BTC price increase also caused a close above a critical horizontal area. With the ETF approval drawing near, how long will this increase continue?
Bitcoin Closes Above Resistance
The BTC price has increased since October 2023. The rally led to a high of $44,729 at the start of December, also causing a breakout above a long-term horizontal and Fib resistance level. Bitcoin began to consolidate afterward.
Nevertheless, the Bitcoin price increased significantly this week, immediately breaking out above the 2023 high and reaching $45,920, the highest price since April 2022.
The deadline for the SEC to decide on the Bitcoin ETF approval is on January 10, causing rampant speculation as to how it will affect the BTC price.
Market traders use the Relative Strength Index (RSI) as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.
Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite.
The RSI is in overbought territory but still increasing. Also, there is no confirmed bearish divergence to warn of an impending decrease.
What Do the Analysts Say?
Cryptocurrency traders and analysts on X have a bullish outlook on the future BTC price trend.
Scott Melker is bullish because of a breakout from a symmetrical triangle. He tweeted:
Breaking out of the bull pennant after nearly a month of consolidation. The target based on the measured move from the length of the flag is roughly $54,000. Targets rarely hit, anything can happen. But that’s what the chart says.
Breaking out of the bull pennant after nearly a month of consolidation. The target based on the measured move from the length of the flag is roughly $54,000. Targets rarely hit, anything can happen. But that’s what the chart says.
Despite the bullish BTC price prediction, closing below $44,500 will mean the local top is in. Then, the BTC price can fall by 20% to the closest support at $36,500.
Original source: https://cryptonews.net/news/bitcoin/28336377/
