Bitcoin price starts moving again with a break above $44,300 likely to propel BTC above $50,000.
Bitcoin price is lethargic ahead of the New Year as investors look forward to approval of spot Bitcoin exchange-traded funds (ETFs) in the US come January. The largest cryptocurrency had rallied to almost touching $45,000 in December but corrected to test support at $40,000.
Due to the indecision among bears and bulls, Bitcoin continued to wobble between resistance at $45,000 and support at $40,000. A break above the seller congestion could trigger a FOMO-driven rally above $50,000 bolstered by optimism around the approval of the ETF.
Bitcoin Price Prediction: Navigating The Incoming Breakout
Bitcoin is mainly in the bulls’ hands supported by an ascending trendline, forming a bullish triangle. With at least four bounces off this support line, BTC could easily resume the uptrend.
Moreover, the ongoing consolidation in the ascending triangle paints an enhanced bullish picture. However, traders must consider entering fresh long positions to defeat the immediate confluence resistance at $43,000 formed by the 50 Exponential Moving Average (EMA) (in red) and the 20 EMA (in blue).
The Relative Strength Index (RSI) marginally backs the bullish theory after recovering from near oversold conditions at 30 although it is facing some resistance at 50 at the time of writing.
The ascending trendline would be validated with Bitcoin price stepping above the horizontal ray (x-axis) resistance at $44,300. Traders can enter long positions above the confluence resistance at $43,000 but most importantly above $44,300 while targeting a 13% move to $50,050.
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An incoming buy signal from the Moving Average Convergence Divergence (MACD) indicator is another signal traders should consider in the short term. The MACD line in blue is about to cross above the signal line in red which would bolster the bullish outlook.
Bitcoin Holders Increase Risk Appetite
Bitcoin holders are still scooping up the coin as the price consolidates, according to blockchain data by IntoTheBlock. It appears that history is repeating itself because “long-term holders are still accumulating.”
The Bitcoin hodlers’ balance is an excellent indicator for measuring market cycles. Currently, long-term holders are still accumulating, as they did in previous pre-bull markets.
🔗https://t.co/qWhryCeM0D pic.twitter.com/fREwfFJziD— IntoTheBlock (@intotheblock) December 27, 2023
Crypto analyst Rekt Capital told his followers on X that “the BTC bottoming out candle 3-year is coming to an end” based on the four-year cycles that are linked to Bitcoin halving.
The #BTC Bottoming Out Candle 3 year is coming to an end, according to Four Year Cycle principles
But a new Confirmed Trend Reversal Candle 4 is set to form next
So what should we pay attention to in 2024?
A thread…$BTC #Crypto #Bitcoin pic.twitter.com/xgrNYS3ZEb
— Rekt Capital (@rektcapital) December 22, 2023
Another analyst Crypto Thanos agreed with the sentiments that Bitcoin’s dip is now over and “we are ready to soar up again.”
He added that investors who bought BTC at $41,500 are already in profit. Therefore, it is prudent to say that with a break above resistance at $45,000, Bitcoin price could quickly surge above $50,000.
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