Will the Bitcoin Price Surpass $50000 in January?
The BTC price may remain sideways until the channel pattern is intact. A bullish breakout from the upper trendline will intensify the buying momentum. The intraday trading volume in Bitcoin is $17.4 Billion, indicating a 15% loss.
The recovery trend in leading cryptocurrency Bitcoin started losing momentum in December 2023 which tilted its trajectory nearly sideways below $45000. This consolidation could be attributed to the uncertainty around the approval of spot Bitcoin ETFs.
A look at the daily time frame chart shows the consolidation has developed into a channel pattern consisting of two parallel walking trendlines. The coin price rebounded several times from this dynamic resistance and support indicates the traders have taken strict note of this structure.
By the press time, the Bitcoin price traded at $44333 with an intraday gain of 0.4%. Moreover, the U.S. Securities and Exchange Commission (SEC) is showing signs of progressing towards approving the first U.S. spot Bitcoin ETFs, evidenced by the submission of amended 19b-4 filings from multiple exchanges.
Thus, the BTC price is more likely to break the overhead trendline which would signal the upcoming direction rally. The post-breakout rally may push prices to $52100, followed by $60000. Alternatively, a breakdown below the lower trendline would signal a new correction phase.
Long-Term Vision: Over 30% of Bitcoin Remains Unmoved in 5 Years
According to recent insights from IntoTheBlock, over 30% of Bitcoinโs total supply hasnโt been moved in more than five years, highlighting a significant trend in the cryptocurrency market: long-term holding, or โHODLingโ. This chain statistic suggests that a substantial number of Bitcoin investors are not just short-term traders, but long-term believers in the assetโs value. Theyโre choosing to hold onto their Bitcoin through various market ups and downs, indicating a strong conviction in its future potential.
- Bollinger band: A narrow range of Bollinger band indicators accentuates uncertain market sentiment.
- Relative Strength Index: A bearish divergence in the daily RSI slope evidenced by lower low formation reflects a weakening of bullish momentum.
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- Spot Bitcoin ETF: Odds of SEC Disapproval Falls to 5%
Hot Take: The Future of Bitcoin Price Movement
The channel pattern observed in the Bitcoin price chart indicates that the market is currently waiting for the approval of spot Bitcoin ETFs. While there have been notable swings in the daily chart, the price movement remains within this pattern, suggesting a shallow recovery. The upcoming direction rally could push prices above $50000, with potential targets at $52100 and $60000. However, if there is a breakdown below the lower trendline, it may signal a new correction phase. Long-term holding trends indicate strong conviction among Bitcoin investors, with over 30% of the total supply remaining unmoved in five years.