The Bitcoin price experienced a significant drop on January 3, but it has since recovered and is close to its previous highs.
Bitcoin Consolidates Above Resistance
Technical analysis of the weekly time frame shows that Bitcoin has been in an upward trend since the beginning of 2023. The increase in price accelerated when the Relative Strength Index (RSI) moved into overbought territory. This suggests that bulls still have an advantage.
In the previous bullish cycle, a similar movement occurred between the price and RSI.
Currently, Bitcoin is trading above an important resistance level.
Will the Bitcoin ETF Be Approved?
There is speculation about the approval of a Bitcoin Exchange-Traded Fund (ETF) by the Securities and Exchange Commission (SEC). While many crypto enthusiasts believe the approval is imminent, more than 60% of financial advisors do not anticipate it.
Bloomberg’s senior ETF analyst, Eric Balchunas, believes that leaks and chatter will precede the official decision by the SEC. Scott Melker, a cryptocurrency analyst, has heard that issuers already know that the ETFs are being approved.
Caitlin Cook suggests that crypto enthusiasts may be underestimating the long-term effect of the ETF approval, as it could attract investors seeking exposure to crypto through a simple and set-and-forget approach.
BTC Price Prediction: What Happens Until the ETF?
The daily technical analysis presents a mixed outlook for Bitcoin due to price action, Elliott Wave count, and RSI readings. While there are indications of significant upward movement, there is also a bearish divergence in the daily RSI.
If Bitcoin breaks out from its current channel, it could increase by 15% to reach the next resistance level at $50,800. However, a breakdown from the channel could lead to a 14% drop to the nearest support at $37,800.
A fractal from November 2020 suggests that a breakout from a similar channel led to a parabolic rally in the Bitcoin price.
Hot Take: The Potential Impact of Bitcoin ETF Approval
If the SEC approves a Bitcoin ETF, it could have a significant impact on the cryptocurrency market. While some crypto enthusiasts may be bullish about the approval, they may not fully understand its long-term effects. The approval could attract more investors seeking exposure to crypto through a simple and set-and-forget approach. This trend could mark just the beginning of broader adoption and participation in the crypto market.
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