Bitcoin Price Consolidating
Bitcoin price reached a new yearly high at $38,500 but has since retraced to $37,735. The repeated failed attempts to break resistance at $38,000-$39,000 are disappointing for traders and investors hoping for a breakout above $40,000 before the end of the year.
Consolidation and Support Levels
Analysts believe that Bitcoin is currently consolidating and could potentially move towards lower support levels between $33,000 and $35,000. This consolidation has been ongoing for the past 30 days, according to CryotoBusy.
Waiting for Catalysts
The Relative Strength Index (RSI) on the daily chart indicates that Bitcoin needs a catalyst to make a significant move. Many speculate that the approval of spot Bitcoin exchange-traded funds (ETFs) could be this catalyst. However, it is likely that the Securities and Exchange Commission (SEC) will delay their decision on ETF proposals until January 2024.
Bearish Outlook
Bitcoin’s current bearish outlook is a result of its rejection from highs around $38,500. The RSI on the four-hour chart suggests a downward path in the short term. The 50 Exponential Moving Average (EMA) may provide some support, but further declines could lead to a sweep of liquidity between $33,000 and $35,000.
68% of Bitcoin Holders In Profit
According to blockchain data from IntoTheBlock, around 68% of Bitcoin holders are currently in profit. Strong support levels exist between $35,931 and $37,077. Any losses below this range are unlikely to be severe as investors would see it as an opportunity to buy the dip.
Hashrate and Miners
The increasing hashrate on the Bitcoin network indicates the presence of new miners. A higher hashrate is considered bullish for Bitcoin as it signifies a stronger network. While a correction to $33,000 is possible, it could potentially pave the way for a bullish trend in 2024.
Hot Take: Bitcoin Price Consolidation Continues Amidst Hopes of ETF Approval
Bitcoin’s price continues to consolidate between $38,000 and $39,000, disappointing traders and investors awaiting a breakout above $40,000. Analysts believe that Bitcoin may move towards lower support levels between $33,000 and $35,000 before finding a new direction. The approval of spot Bitcoin ETFs is seen as a potential catalyst for a significant price move, but it is likely that the SEC will delay its decision until January 2024. Despite the bearish outlook in the short term, strong support levels and increasing hashrate suggest that Bitcoin may experience a bullish trend in the future.
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