BTC Price Could Retest $37,000 in January Despite Bitcoin ETF Approval, Here’s Why
The price of Bitcoin (BTC) has been floating around $42,500 for a while now, as investors eagerly await the launch of the first spot Bitcoin ETF in the US. A report published last week suggests that US SEC approval will likely come this week.
Will There Be Bitcoin ETF Sale News?
After a solid 160% rally last year through 2023, analysts believe the BTC price may see some pullback soon after the arrival of the Bitcoin ETF. Possibly, BTC may enter a horizontal consolidation until the Bitcoin halving, which is planned around April 2024.
Prominent investor and crypto analyst Rekt Capital shares his predictions for Bitcoin’s latest monthly close, highlighting key support levels and historical patterns.
In a recent update, Rekt Capital highlights that Bitcoin has historically exhibited volatile retests while trending around the $41,000 support level (shown in blue). During these retests, downside wicks extended to around the $37,000 region, indicating a pattern in the price action.
Based on historical data, Rekt Capital suggests that any possible decline to the $37,000 level could be considered a healthy pullback. The analyst notes that Bitcoin has experienced similar price movements in the past, and such patterns have historically contributed to the cryptocurrency’s overall market health.
Additionally, Rekt Capital emphasizes that with 100 days left until Bitcoin Halving, deeper pullbacks before the halving could present the ultimate bargain buying opportunities for investors. As the market continues to evolve, traders and investors are closely monitoring these key support levels and historical patterns to gain potential insights into Bitcoin’s future price movements.
Kindness: Rect Capital
BTC Increase Remains Limited, Bears’ Clutch Strengthens
Bitcoin options data for January 12 has been showing weakness lately. Additionally, analysts believe that even if the BTC price rises upon ETF approval, the rise will remain limited here.
According to a recent analysis, the current state of the Bitcoin market is marked by lower highs and lower lows, indicating increasing strength among the bears. Notably, the previous peak above $44,800 has yet to be retested, further supporting the bearish trend.
Analysis of the chart reveals that Bitcoin price recently fell below the daily EMA-20 level at $42,542 and this level has not been broken in the last few months after reaching a multi-month high. The rise in drop volume reached a 2-day peak and recorded the highest levels since April, suggesting the possibility that a correction is approaching.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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