Bitcoin's $48k bulwark between $55k price target

2024-01-09 10:04:46

Bitcoin may face minimal traffic on the road to $55,000 if the largest cryptocurrency can break a key resistance level

According to technical analyst Ali Charts, Bitcoin (BTC) shows a clear path toward $60,000, although it hinges on BTC breaking through resistance around the $48,000 price range. This level was last seen in April 2022 following a U.S. banking crisis shortly before Terra’s eco implosion

On-chain data from IntoTheBlock, cited by the trader, suggests that BTC could target this resistance point after forming support of around $42,000. At this level, nearly 2.5 million Bitcoin addresses bought 1.12 BTC, currently worth over $52.5 billion after crypto’s king token made a 21-month high by surpassing $47,000.

A forthcoming spot BTC ETF approval and the Bitcoin halving in April may be two catalysts driving market prices forward. The U.S. Securities and Exchange Commission (SEC) is reportedly close to a decision on BTC ETFs tied to spot price rather than futures funds, which already trades on major exchanges

The landmark decision could attract billions into BTC since American institutional and retail investors would finally have regulated access to Bitcoin exposure. Although issuers and crypto proponents regard an approved spot BTC ETF as a done deal, reports say the SEC may still delay or deny applications

There has also been an argument that BTC’s halving could overshadow market price impacts triggered by an approved ETF. The event, happening once every four years, halves the block mining reward, slowing the rate new BTC enters the market. Typically, this change supplements BTC scarcity and could drive up prices when coupled with strong demand, which is coincidentally expected from spot BTC ETFs.

BTC makes 21-month high | Source: TradingView

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