Bitcoin Price Prediction as ETF Approval Date Approaches – Quick Pump to $50,000 Incoming?
In the volatile world of cryptocurrencies, Bitcoin recently experienced a sharp decline, losing over 7% in just 24 hours, and dragging other major cryptocurrencies down with it. Ethereum, Solana, XRP, Cardano, and Avalanche all suffered significant losses following Bitcoin’s drop to below $42,000.
This sudden market downturn is largely attributed to the growing apprehension surrounding the upcoming decision by the US Securities and Exchange Commission (SEC) on the much-anticipated spot Bitcoin ETF applications.
Matrixport Predicts Bitcoin Drop Amid ETF Uncertainty
The cryptocurrency market is undergoing a significant downturn, possibly linked to the expected rejection of Bitcoin spot ETFs by the U.S. SEC. Matrixport’s analysis anticipates a sharp drop in Bitcoin’s value, potentially reaching $36,000. This forecast hinges on the SEC’s likely refusal of Bitcoin spot ETF applications in January.
Chairman Gary Gensler’s cautious regulatory approach, combined with the Democrat-led SEC panel, is adding to the market’s uncertainty. Despite this bearish short-term outlook, Matrixport expects a positive trajectory for Bitcoin in the long term, projecting a recovery above $42,000 by the end of 2024. The pending SEC decision is causing investor wariness, influencing the current market slump.
Matrixport: Market Jitters Over SEC’s ETF Decision Impact
Matrixport, a cryptocurrency investment services firm, anticipates the U.S. SEC’s rejection of all spot Bitcoin ETF applications. The company cites the current SEC leadership’s cautious stance on crypto adoption as a key factor in this prediction. While acknowledging the potential boost in crypto adoption from ETF approval, Matrixport emphasizes Chair Gensler’s prioritization of stricter compliance.
The report suggests that political factors may impede Bitcoin ETF approval, viewing it as a legitimate alternative store of value. The optimism surrounding the ETF approval has previously driven a substantial increase in Bitcoin prices, with a significant influx of investment in anticipation of a positive decision.
Bitcoin Price Prediction
On January 3rd, Bitcoin presents a volatile scenario, recently experiencing a sharp decline of 5%, now trading at $42,645. This downturn in the leading cryptocurrency reflects broader market anxieties, particularly around regulatory uncertainties.
From a technical standpoint, Bitcoin’s pivot point stands at $42,483. Should it manage to overcome immediate resistances at $43,658, $44,877, and $45,966, a bullish trend could be reignited. However, support levels at $41,285, $40,393, and $39,348 loom as critical junctures to buffer against further losses.
#BitcoinUpdate: BTC faces turbulence, trading at $42,645.
Resistance seen at $43,658, $44,877, $45,966.
Supports await at $41,285, $40,393, $39,348.50 EMA at $43,350 reinforces resistance.
All eyes on $42,000 for potential bounce back. #CryptoTrends #BTCAnalysis pic.twitter.com/1KYdfCbWC3
— Arslan Ali (@forex_arslan) January 3, 2024
The Relative Strength Index (RSI) is currently at 40, hovering below the neutral mark, indicating bearish sentiment. Additionally, Bitcoin’s trading below its 50-Day Exponential Moving Average (EMA) of $43,350, further signifies a bearish trend.
Technical analysis reveals that the current trendline might limit the downtrend, offering potential buying opportunities above $42,000. Yet, the closure of bearish candles under the 50 EMA could drive more selling pressure.
In summary, while the short-term outlook for Bitcoin is cautiously optimistic above the $42,000 threshold, the market remains vulnerable to swift changes, influenced by external regulatory and economic factors. Investors should remain attentive to these key technical levels and broader market indicators for a clearer directional cue.
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