- While the price of Bitcoin (BTC) has been hovering around $42,500 for a while, investors are eagerly anticipating the launch of the first spot Bitcoin ETF in the United States.
- A renowned investor and crypto analyst shares insights into the recent monthly closing of Bitcoin and emphasizes key support levels and historical patterns.
- As the market continues, traders and investors closely monitor these critical support levels and historical patterns for potential insights into possible Bitcoin price movements.
Struggling to hold above $42,000, the famous analyst suggests that Bitcoin could test $37,000 in January.
Bitcoin Price Could Visit $37,000
While the price of Bitcoin (BTC) has been hovering around $42,500 for a while, investors are eagerly anticipating the launch of the first spot Bitcoin ETF in the United States. A report from last week suggests that approval from the SEC is expected to come within this week.
After a robust 160% increase last year in 2023, analysts believe that BTC may experience a pullback shortly after the arrival of the Bitcoin ETF. BTC might enter a horizontal consolidation until the planned Bitcoin halving around April 2024.
The renowned investor and crypto analyst share insights into the recent monthly closing of Bitcoin and emphasize key support levels and historical patterns. In the analyst’s latest update, attention is drawn to the fact that Bitcoin often hovers around the $41,000 support level, exhibiting volatile pullbacks. During these pullbacks, downward wicks extend to approximately the $37,000 region, indicating a pattern in price movement.
Based on historical data, the analyst suggests that a potential drop to the $37,000 level could be considered a healthy retracement. The analyst highlights that Bitcoin has experienced similar price movements in the past, and these patterns typically contribute to the overall market health of the cryptocurrency.
Additionally, with just a little over 100 days remaining until the Bitcoin Halving, the analyst emphasizes that deeper pullbacks during the pre-halving period could present ultimate opportunities for investors. As the market continues, traders and investors closely monitor these critical support levels and historical patterns for potential insights into possible Bitcoin price movements.
Limited Upside Potential for BTC, Bears’ Dominance Strengthens
Bitcoin option data for January 12 shows recent weakness. Furthermore, analysts believe that even if the BTC price rallies with ETF approval, there is limited upside potential from this point forward. The current state of the Bitcoin market is marked by lower highs and lower lows, indicating bearish dominance, according to a recent analysis. Particularly, the previous peak above $44,800 has not been subjected to a retest yet, further supporting the bearish trend.
Examining the chart, it is evident that Bitcoin’s price recently fell below the daily EMA-20 at $42,542, which had not been breached since reaching multi-month highs in the past few months. The increase in bearish volume, reaching two-day highs not seen since April, suggests the likelihood of an upcoming correction.
