The Bitcoin Price Soars Above $45,000 in 2024
The price of Bitcoin (BTC) has experienced a significant increase, reaching above $45,000 for the first time in over 600 days. This surge in price has also led to a close above a critical horizontal area. As the deadline for the SEC’s decision on the Bitcoin ETF approval approaches, there is speculation about how this increase will continue.
Bitcoin Breaks Above Resistance Level
Since October 2023, the BTC price has been on the rise. In early December, it reached a high of $44,729 and broke out above a long-term horizontal and Fib resistance level. Although Bitcoin entered a consolidation phase, it experienced a significant increase this week, surpassing the 2023 high and reaching $45,920, its highest price since April 2022.
Analyzing Relative Strength Index (RSI)
The Relative Strength Index (RSI) is used by market traders as a momentum indicator to identify overbought or oversold conditions and make decisions about buying or selling assets. An RSI reading above 50 with an upward trend indicates an advantage for bulls, while readings below 50 suggest the opposite. Currently, the RSI is in overbought territory but still increasing, with no confirmed bearish divergence indicating an impending decrease.
What Analysts Say About BTC Price
Cryptocurrency traders and analysts have a bullish outlook on the future price trend of BTC. Scott Melker believes that the breakout from a symmetrical triangle indicates a target of roughly $54,000 based on the measured move from the length of the flag. CryptoMichNL expects a continuation towards $50,000 and suggests that the impending ETF approval can catalyze this upward movement. Shardi B believes that the price will gradually increase to its all-time high due to the breakout above $45,000.
Bitcoin Price Prediction: $50,000 Incoming?
Technical analysts use the Elliott Wave theory to determine the direction of a trend by studying recurring long-term price patterns and investor psychology. The current wave count suggests that BTC is in the fifth and final wave of an upward movement. The RSI supports this increase as it generated a hidden bullish divergence during the fourth wave. If the count is correct, the BTC price could reach the first confluence of resistances between $48,500 and $49,600. Further resistance levels are projected at $54,300 and $57,500. However, if the price closes below $44,500, it could indicate a local top and a potential 20% decrease to the closest support at $36,500.
Hot Take: Bitcoin’s Bullish Run Continues
The Bitcoin price has experienced a strong start in 2024, surpassing $45,000 for the first time in over 600 days. With a close above a critical resistance level and speculation about the upcoming SEC decision on the Bitcoin ETF approval, analysts and traders have a bullish outlook on BTC’s future price trend. Technical analysis using indicators such as the Relative Strength Index (RSI) and Elliott Wave theory further support this positive sentiment. However, it is important to monitor key support and resistance levels to gauge potential market movements. Overall, Bitcoin’s upward momentum seems to be continuing in the near term.
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