Bitcoin continued its decline for the second day in a row to $41,300 before recovering above the $42,000 mark.
Bitcoin
As 2023 draws to a close, Bitcoin (BTC) price remains directionless and still consolidating below a multi-week barrier. With retail markets expected to pull back over the next two days, weekend volatility could see BTC face its last major drop in 2023 before a 2024 recovery begins, which would be boosted by the approval of a potential Bitcoin spot ETF.
The price of Bitcoin has been consolidating on an ascending trendline since the first week of November and peaked on December 4, when Bitcoin broke through the weekly supply zone of $40,387 to $46,999.
The key hurdle is located around the midpoint of the supply zone at $43,860. A weekly candle close above this level will confirm the continuation of the uptrend.
However, from a technical perspective, Bitcoin price may give late-stage investors one last chance to buy before the 2024 bull run, thanks to the spot ETF craze.
Although BTC has fallen into overbought territory, the relative strength index (RSI) still looks weak, which foreshadows a pullback. Given the ongoing trajectory of the RSI, if the momentum indicator breaks above 70, confirming that it is time to sell BTC, further declines could cause the asset to gradually lose trendline support.
In case of further decline, Bitcoin could fall below the weekly supply zone base at $40,387 and even below the psychological level of $40,000 and test the $37,800 range.
The Fear and Greed Index also shows that while sentiment is in the greed zone, the level has steadily declined from last month to now, falling to the threshold of 65.
Despite the approaching timeline for BTC ETF spot approval, the indicator shows a cautious market due to expectations of increased volatility.
However, bulls are still holding on to the Bitcoin market. Evidence of this is that both the Awesome Oscillator (AO) and the MACD are in positive territory, and the MACD is still moving above its signal line (orange band), suggesting that upside potential remains high.
Therefore, the increase in buying pressure could push Bitcoin price above the $43,860 barrier and potentially turn the weekly supply area into an uptrend breakout point towards the upper limit of $46,999 and the psychological test of $48,000. The bullish momentum will be confirmed when the price breaks out and closes above the $43,860 barrier, invalidating the bearish thesis.
Breaking through the psychological barrier of $48,000 would pave the way for Bitcoin price to rise to $50,000, or in the case of ambitious moves, the psychological level of $60,000.
Despite BTC’s pullback to around $42,000, the altcoin market continues to grow
Sei (SEI) and Bitcoin SV (BSV) are two of the best performing projects today. In particular, SEI, a utility token for a layer-1 network optimized for digital asset trading, has risen 26% in the past 24 hours and more than 55% in a week. BSV prices have also jumped to the $100 mark, up 23% in the short term and doubling in value in the past 7 days.
Other projects such as ORDI (ORDI), Tellor (TRB), Mina (MINA), Lido DAO (LDO), Kaspa (KAS), Optimism (OP), and Astar (ASTR) all have profits above 10%.
Ethereum (ETH) closed down for two consecutive days after failing to break through $2,450 on December 28. It fell to around $2,255 and is currently back to around $2,300, down more than 1% from 24 hours ago.
(Personal opinion, not a recommendation)
In the crypto industry, if you want to seize the next bull market opportunity, you need to have a high-quality circle so that everyone can keep each other warm and maintain insight. If you are alone, looking around and finding no one, it is actually very difficult to persist in this industry.
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