Bitcoin Price Approaching Resistance Region
Bitcoin’s price has been steadily increasing since the recent announcement of SEC ETF approval. The price is now reaching a crucial resistance region, which includes the upper boundary of the ascending channel and the static resistance at $48K. Reclaiming this significant level presents challenges for Bitcoin.
Technical Analysis
The Daily Chart
A comprehensive analysis of the daily chart shows that the price is in an uptrend, approaching a strong resistance zone. This zone is defined by the upper boundary of the ascending channel and the critical $48K threshold. Breaking through this area could lead to a new all-time high for Bitcoin. However, if sellers take control, Bitcoin may enter a consolidation correction stage and retrace towards the support region.
The 4-Hour Chart
On the 4-hour chart, there is a consolidation pattern known as an ascending flag. This indicates a balance between buyers and sellers around this price range. The recent bullish sentiment from the ETF approval news has caused an uptrend, with the goal of breaking through the upper boundary of the flag. However, rejection is still possible, leading to a correction stage before the next impulsive move.
On-chain Analysis
The Stablecoins(ERC20) Exchange Reserve metric provides insight into participants’ risk appetite and buying power. The amount of dollar-denominated stablecoins (ERC20) held on cryptocurrency exchanges has increased from $18 billion to $20 billion in recent weeks. This influx of capital into the crypto market has influenced altcoin prices. The interest in Bitcoin spot ETFs is expected to contribute further to capital inflow into the crypto ecosystem.
Hot Take: Bitcoin’s Potential Increase in Risk Appetite
With the approval of Bitcoin spot ETFs, there is a noticeable trend reversal indicating a potential increase in risk appetite for investors. This shift could benefit the entire digital asset market in 2024 and beyond.
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