As the final countdown for the United States Securities and Exchange Commission (SEC) to issue its decision on the spot Bitcoin Exchange-Traded Funds (ETFs), the crypto volatility has been gradually increasing. For the first time since March 2022, Bitcoin (BTC) price has traded above $47k. With the odds of spot Bitcoin ETF approval in the United States higher than before, Bitcoin price edged more than 7 percent higher in the past 24 hours to trade around $46,752 during the early Asian session on Tuesday.
Bitcoin’s Bullish Scenario
Bitcoin price has continued with the bullish sentiment that began last year in 2024. Amid the bullish outlook fueled by the spot ETF frenzy, the weekly death cross between the 50 and 200 Moving Averages (MA) has been invalidated.
1/ Bullish Case
If $BTC rises to $48.5k, the share of 1D to 1W holders is likely to rise above 8%, which indicates an overheated market and reinforces a correction.
$48.5K is the average unit price of 2-3Y holders, and it can create a main resistance. pic.twitter.com/LbRDnlqop5
— CryptoQuant.com (@cryptoquant_com) January 9, 2024
According to analysts from CryptoQuant, Bitcoin price is likely to face a significant resistance level of around $48.5k, based on the average unit price of specific holders. Nonetheless, Bitcoin price could continue rallying beyond $50k depending on the cash inflow rate if the US SEC approves the dozen spot Bitcoin ETFs.
Bearish Perspective
Amidst the spot Bitcoin ETF approval frenzy in the United States, some experts have warned of the possibility of the sell-the-news outcome. In this case, CryptoQuant analyst expects Bitcoin price to find a solid support zone between $30k and $34k. However, it is worth noting that Bitcoin’s bearish outlook could be short-lived as the fourth halving is about 100 days away from happening, which has in the past triggered the macro crypto bull runs.
Zameer Attar
Zameer is a financial analyst and writer with a particular interest in cryptocurrency markets. He has been studying cryptocurrencies and their market behavior for several years and deeply understands the factors that affect the price of cryptocurrencies. His expertise lies in his ability to use both technical and fundamental analysis to make informed predictions about the future direction of cryptocurrency prices. He has a strong understanding of market sentiment and uses this to inform his trading decisions and price predictions.
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