Is this the top or a last price spike?
The SEC has approved the first Spot Bitcoin Exchange Traded Funds (ETFs), and they have begun trading. Given that the price has reached the 0.618 fibonacci and traders may be moving their profits into other assets, a sell-off would not be surprising. However, markets can be unpredictable, so a retest of $48,000 or even higher is still possible.
Could the weekly close confirm the top?
Many believe that this is the top for bitcoin, at least in the short term. A long wick above the price could signal bearishness if it remains at the weekly close.
Which support levels will hold?
If a correction does occur, some analysts predict a relatively shallow dip to around $39,000 or $37,000 as a support area. However, a deeper correction to $30,000 would be healthy for the bull market going forward.
Despite the uncertainties, bitcoin continues to make higher highs, and any retests of the mentioned support levels would create higher lows.
The long-term role of bitcoin
Looking ahead, bitcoin serves as a reliable store of wealth and a means of protecting oneself from failing currencies. This enduring role gives it value as an investment.
Hot Take: Is the Bitcoin Rally Losing Steam?
With the launch of Spot Bitcoin ETFs and the price reaching key levels, many are wondering if the recent rally is losing steam. A potential sell-off and the weekly close will provide valuable insights into the future direction of bitcoin. Analysts suggest both shallow and deep corrections, but regardless of short-term fluctuations, bitcoin’s long-term role as a store of wealth remains intact. Whether this is the top or a temporary spike, it’s clear that bitcoin continues to captivate investors and serve as a potential protection against failing currencies.
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