A Bitcoin boom is inevitable if this level is broken
Currently Bitcoin (BTC) is struggling with a significant resistance level just below $45,000, despite recent bullish momentum linked to speculation about the approval of a spot exchange-traded fund (ETF) in the US.
Prevailing market sentiments indicate anticipation of a potential rally for Bitcoin aiming to reach a new all-time high.
According to an analysis of "Tradingshot,” a crypto trading expert posted on TradingView on December 29, has a suggestion that Bitcoin could be on the verge of a parabolic rally if it manages to break through the landmark $48,500 resistance point.
Tradingshot noted a significant spike in Bitcoin's growth over the past two months, bringing it closer to the crucial $50,000 mark. The expert emphasized that a break above the $48,500 resistance could signal the start of a parabolic phase in the bull cycle.
“Bitcoin (BTC) has seen a significant mid-cycle rally over the past 60 days, approaching the key $50,000 level. A technical break above the $48,500 resistance marks the start of the parabolic phase of the bull cycle", as the expert notes.
Using the Pitchfan tool to illustrate market cycles, the analysis visually depicted the current stage of Bitcoin's market movement. Historical patterns suggest that breakouts past resistance levels in the Bitcoin market often coincide with the halving event, which usually signals the start of a rally to a new record high.
With the event roughly four months away, the expert recommended that a pullback to the 50-day moving average could serve as a buying opportunity for investors using investment averaging (DCA) strategies.
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Here's who will be BlackRock's official Bitcoin ETF partnerAs for the current state of Bitcoin, despite indications of near-term consolidation, the cryptocurrency is in a stronger position than it was 18 months ago, mainly due to speculation surrounding ETF approval. However, not all market participants foresee a significant price movement triggered by the approval.
According to the insights of “CrediBULL Crypto", both the anticipation and the actual approval of ETFs are expected to generate buying enthusiasm characterized as "buy the rumor, buy the news".
Market sentiments are leaning towards potential long-term Bitcoin holding behavior reflected in the the data on CryptoQuant as of December 29, showing a multi-week low in Bitcoin exchange reserves, possibly indicating expectations for future gains.
Throughout December, known centralized exchanges supported an average of about 2.04 million Bitcoin tokens. However, the recent outflow of over 33,000 BTC within 24 hours has resulted in a multi-week low in the exchange's reserves, which are now just over 2 million BTC.
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Here's who BlackRock's brokers will be on the eventual approval of the Bitcoin ETFAs for the current price of Bitcoin, it stands at $42,634 at the time of writing, showing a daily growth of over 2%. However, on the weekly chart, the asset fell by around 2%.
Overall, while the $48,000 level remains a critical point in Bitcoin's price trajectory, a break of the $45,000 mark remains a significant resistance level to watch in the short term.
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.
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