Bitcoin Approaching Key Resistance Below $45,000
Bitcoin (BTC) is currently facing significant resistance below the $45,000 mark, despite recent speculation about the approval of a spot exchange-traded fund (ETF) in the United States. However, market sentiment suggests that Bitcoin is on track for a potential rally towards a new all-time high.
An analysis by crypto trading expert Tradingshot indicates that if Bitcoin successfully breaks through the significant resistance at $48,500, a parabolic rally may be imminent. The expert points out that Bitcoin has experienced substantial growth over the past two months, nearing the pivotal $50,000 level. Breaking above the $48,500 resistance could mark the beginning of the parabolic phase of the bull cycle.
Visualizing Bitcoin’s Market Movement
The analysis utilizes the Pitchfan tool to represent cycles and depict Bitcoin’s current market movement stage. Historical patterns show that resistance breakouts in the Bitcoin market often coincide with the halving event, which signals the start of a rally towards a new record high.
With the halving event only four months away, Tradingshot suggests that investors using Dollar Cost Averaging (DCA) strategies should consider buying opportunities during pullbacks to the 1D MA50 (the 50-day moving average).
Bitcoin Consolidating Below $45,000
Despite signs of short-term consolidation, Bitcoin is in a better position compared to 18 months ago due to speculation surrounding ETF approval. However, not all market participants believe that ETF approval will lead to a significant price movement for Bitcoin.
CrediBULL Crypto, a cryptocurrency commentator, believes that both anticipation and actual approval of the ETF will result in purchasing enthusiasm. This is known as a “buy the rumor, buy the news event.”
Market sentiments indicate a possible long-term holding behavior for Bitcoin, as indicated by data from CryptoQuant. Bitcoin exchange reserves hit a multi-week low, suggesting anticipation for future gains.
Bitcoin Price Analysis
Currently, Bitcoin is trading at $42,634 with daily gains exceeding 2%. However, on the weekly chart, Bitcoin has experienced a decrease of approximately 2%.
Technical analysis sourced from TradingView maintains a bullish outlook for Bitcoin. One-day indicators show a ‘buy’ signal at 11, while moving averages favor a ‘buy’ at 9. Oscillators are currently neutral.
While the $48,000 level is crucial for Bitcoin’s price trajectory, it is important to monitor the key resistance at $45,000 in the short term.
Hot Take: Bitcoin’s Potential Parabolic Rally
Bitcoin’s recent surge and potential breach of significant resistance levels suggest that a parabolic rally may be on the horizon. With market sentiment indicating positive expectations and the halving event approaching, investors are considering buying opportunities during pullbacks to take advantage of Dollar Cost Averaging strategies. However, the approval of a spot ETF in the United States may not have a significant impact on Bitcoin’s price movement according to some experts. Nevertheless, Bitcoin’s current consolidation below $45,000 and its overall position compared to previous months indicates positive market sentiment and potential long-term holding behavior.
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