Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn

Bitcoin (BTC) Breaks Through $45,000 as ETF Decision Nears – Is $50,000 Next?

BeInCryptoBeInCrypto2024/01/02 11:42
By:By Valdrin Tahiri 2 January 2024, 11:30 GMT+0000Updated by Ryan James 2 January 2024, 11:30 GMT+0000

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.

BTC/USD Weekly Chart. Source: TradingView

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.

Sponsored
Sponsored

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.

BTC/USDT Weekly Chart. Source: X
Sponsored
Sponsored

CryptoMichNL also expects a continuation toward $50,000 since the area coincides with the high range. He also suggests the impending ETF approval can catalyze this upward movement. Finally, because of the breakout above $45,000, Shardi B believes that the price will gradually increase to its all-time high.

BTC Price Prediction: $50,000 Incoming?

Technical analysts utilize the  Elliott Wave theory  to ascertain the trend’s direction by studying recurring long-term price patterns and investor psychology.

The most likely wave count indicates that the BTC price is in the fifth and final wave of an upward movement that started in September. The count is characterized by the symmetrical triangle in wave four, the most common pattern in the corrective wave.

The RSI supports this increase since the indicator generated a hidden bullish divergence (green) during wave four.

Sponsored
Sponsored

If the count is correct, the BTC price will reach the first confluence of resistances between $48,500 and $49,600 , 7% above the current price. The area is created by the 0.618 Fib retracement resistance level (black) and will give wave five 0.382 times the length of waves one and three combined (white).

If the rally extends further, the next resistance will be 22% above the current BTC price , between $54,300 and $57,500.

BTC/USDT Daily Chart. Source: TradingView

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.

For BeInCrypto’s latest crypto market analysis,  click here.

Sponsored
Sponsored
Explore more

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our  Terms and Conditions ,  Privacy Policy , and  Disclaimers  have been updated.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Stake to earn
CEC, QTLX, GDV and other popular new coins are in hot progress!
Stake now!

You may also like

1inch reveals new cross-chain swap feature

Cointelegraph2024/09/19 02:58

Bitget announcement: Removal of VGXUSDT trading pairs from Futures Trading Bots

Bitget Futures Trading Bots will remove the following pairs on September 26, 2024, 15:00 (UTC+8) to provide a better user trading experience: VGXUSDT Notes: Users should close the relevant orders in advance if they hold strategy orders in these trading pairs. The release and purchase features of th

Bitget Announcement2024/09/19 02:41