Bitcoin’s value climbed beyond $47,000, reaching its peak since April 2022. This rise was triggered by increasing anticipation surrounding the potential approval of a spot-based Bitcoin ETF in the United States. As a result, the rising BTC price has steered the market into a state of extreme greed, indicating the chances of significant volatility in the coming hours.
Bitcoin Regains Monthly Volatility Peak Of 37%
Over the last 4 hours, the Bitcoin price flashed a concerning move. BTC price experienced a quick 2.8% drop on exchanges, falling from $47,000 to $45,700 in five minutes amid last-minute filings for spot Bitcoin ETFs with the SEC. This volatility came after asset managers like BlackRock, VanEck, ARK Invest, 21Shares, and Grayscale Investments updated their filings just before the expected ETF approval date on Jan. 10
As a result, Bitcoin faced significant liquidations amounting to $11.7 million, with contributions almost evenly split between buyers and sellers, showing increased caution in the market. Additionally, there’s been a notable increase in Bitcoin’s volatility, as indicated by IntoTheBlock data, with its volatility index reaching a monthly high of 37%.
This volatility came with strong buying activity near Bitcoin’s recent price drops. However, this trend has also influenced the fear/greed index, pushing it to a 2-year high. Currently, the fear/greed index for Bitcoin’s price stands at 76, indicating extreme greed among traders. This trend is thought to have contributed to a recent drop in Bitcoin’s price to $45,600, although Bitcoin quickly made a recovery from this low point.
At present, the long/short ratio is experiencing a significant upward trend, well above the 1 mark, indicating a growing bullish dominance in the market. The ratio now stands at 1.4795, with approximately 60% of all positions anticipating an increase in price.
What’s Next For BTC Price?
The price of Bitcoin surged past the $46,000 mark, and buyers are now focused on converting the $44,000-$45,000 zone into a robust support area. However, bears are strongly defending the $47K mark. As of writing, BTC price trades at 46,516, surging over 3.8% from yesterday’s rate.
The 20-day Exponential Moving Average (EMA), which is on an upward trajectory at $45,403, along with the Relative Strength Index (RSI) trading near the overbought region, indicates that the momentum is currently in favor of the bulls.
A closure of the price above $47,500 would complete the formation of a bullish ascending channel pattern for the Bitcoin price. Following this pattern, the price could potentially test the $48.1K resistance and might even reach up to $51,000.
However, this bullish scenario could fade if the price reverses from its current price level. Under such circumstances, the price could consolidate around $44,000 and might further drop to the ascending support level at $42,300. This is possible if the SEC’s announcement develops a ‘sell the news’ event.
This news is republished from another source.
