Bitcoin Price Stagnates as Spot Bitcoin ETF Announcement Approaches
The bitcoin price has remained stagnant in recent days following a rejection just below the $45,000 level. As we approach the announcement of the Spot Bitcoin ETF in early January, it’s unclear if this sideways and downward price action will continue throughout 2023.
Price Analysis: Possibility of a Fall to $36,000
Over the past 10 days, bitcoin has formed an M chart pattern, indicating a potential downward movement. If this pattern plays out, the price could drop to around $36,000. Key support levels to watch include $37,800 and $35,300.
Support Breached at $41,000
On a daily timeframe, bitcoin has broken below strong support at $41,000. The next significant support level is at $37,800.
CME Gaps: Upside and Downside
There is a CME gap that has opened below, potentially requiring the price to drop to around $39,290 to close it. Conversely, there is also a gap above at $42,450 that may be closed in due time.
Potential Range-Bound Price Action Ahead
It’s possible that bitcoin has entered a period of range-bound price action, akin to the calm within the eye of a hurricane. This could continue for the next 2 to 3 weeks. However, if the Spot Bitcoin ETF is approved in early January, expect significant volatility in the market.
Hot Take: Uncertainty and Volatility Loom as Spot Bitcoin ETF Announcement Nears
As the announcement for the Spot Bitcoin ETF draws closer, the stagnant and downward movement in the bitcoin price raises the question of how it will perform in the coming months. While technical analysis suggests the potential for a further decline, the market dynamics could drastically shift if an ETF is granted approval. As a crypto investor, it’s crucial to approach trading with caution and adapt to the possible volatility ahead.
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