Bitcoin Dips: Is it a Typical Correction?
Bitcoin is known for its typical corrections during bull markets, often experiencing deep dips of around 30%. In 2021, the price fell 55% before rebounding. However, in the current environment of waiting for a Spot Bitcoin ETF announcement, the dips have been limited to around 10%. This suggests that Bitcoin is not interested in dipping further as it is quickly bought up by those anticipating positive price action after the ETF announcement, potentially in the next two weeks.
$BTC Range Continues
Since early December, Bitcoin has been ranging sideways between the support level of $40,550 and the resistance level of $44,250. The question now is whether it will continue within this range for the next two weeks. This will depend on how much Bitcoin the bulls buy during this consolidation period. As the potential ETF announcement date approaches, buying pressure may intensify, pushing Bitcoin towards a possible target of $48,000 to $50,000.
Bitcoin Bounce
Looking at the price action, Bitcoin has bounced nicely from the 0.618 Fibonacci level and is now heading higher. However, given that institutions are on holiday, it remains to be seen if there will be enough volume to break the yearly high at around $45,000. The next couple of weeks are highly anticipated as traders wait to see how the market will unfold.
Hot Take: Bitcoin’s Resilience and Anticipation for ETF Announcements
Bitcoin’s ability to maintain its price despite the typical corrections highlights its resilience. Although recent dips have been limited, the anticipation for Spot Bitcoin ETF announcements is driving positive price action. Traders are eagerly waiting to see if Bitcoin will break out of its current range and reach new highs. The next two weeks will be crucial in determining the market’s direction and whether Bitcoin can continue its upward trajectory.
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