Bitcoin’s price has undergone a consistent surge following the recent announcement of SEC ETF approval, reaching a crucial resistance region.
This price range includes the upper boundary of the ascending channel and the static resistance at $48K, presenting challenges in reclaiming this significant level.
Technical Analysis
By Shayan
The Daily Chart
A comprehensive analysis of the daily chart reveals a sustained uptrend in the price, approaching a substantial resistance zone. It is defined by the upper boundary of the ascending channel and the critical $48K threshold, forming a robust barrier for Bitcoin buyers. A successful breakthrough in this crucial area could initiate a profound uptrend, potentially achieving a new all-time high (ATH) for Bitcoin.
However, if sellers gain control, Bitcoin may enter a consolidation correction stage, with the price retracing towards the substantial support region. This support region includes the middle trendline of the channel, coinciding with the 100-day moving average at $38K, potentially halting further downward attempts.
The 4-Hour Chart
The 4-hour chart illustrates price consolidation within an ascending flag pattern, indicating a balance between sellers and buyers around this price range. However, the recent bullish sentiment stemming from the ETF approval news has led to a renewed uptrend, with the aim of breaching the upper boundary of the flag.
Currently, the price is experiencing heightened volatility as buyers and sellers engage in a struggle. A successful breakout could pave the way for a renewed and notable bullish movement.
However, considering the current market conditions, rejection is still possible, followed by retracement legs toward the substantial support at $38K, completing a necessary correction stage before the next impulsive move.
On-chain Analysis
By Shayan
This chart depicts the Stablecoins(ERC20) Exchange Reserve metric, providing insight into the participants’ risk appetite and potential buying power.
The quantity of dollar-denominated stablecoins (ERC20) held on cryptocurrency exchanges initiated the year at approximately $18 billion and has recently surged to $20 billion this week. This influx of $2 billion underscores the capital flow entering the cryptocurrency market, influencing the current prices of altcoins.
The heightened interest in Bitcoin spot exchange-traded funds (ETFs) is anticipated to contribute further to the capital inflow into the entire crypto ecosystem. Although the trend has been on a decline since the conclusion of 2022, it has remained consistent throughout 2023.
Looking ahead to 2024, considering the first-ever Bitcoin spot ETFs approval, there is a noticeable trend reversal, signaling a potential increase in risk appetite. This shift could ultimately benefit the digital asset market as a whole.
The post Bitcoin ETF Aftermath: Is $50K Next? (BTC Price Analysis) appeared first on CryptoPotato.
