- The approval of a Bitcoin ETF will see fresh influx of money from traditional and institutional investors.
- Bitcoin recently broke out of a long-term descending channel.
The just concluded was referred to as the year of correction in the cryptocurrency market. Digital assets led by Bitcoin trimmed most of the gains accrued towards the end of 2017 and early 2018. Moreover, the market value declined significantly by more than $700 billion to the current $129 billion. In addition to that, Bitcoin formed new 2018 lows after it broke below the major support areas at $6,000 and $5,000 respectively.
The new year has dawned up us we expect the coins and altcoins will make a correction to the upside. There are various factors that are believed to be the main driving forces for the impending bullish reversal. For instance, the approval of a Bitcoin exchange-traded fund (ETF) will see fresh influx of money from traditional and institutional investors. Improvement of the regulation environment will also increase confidence in the market. Another factor is mass adoption; this is directly linked to Bitcoin gaining more real world use cases.
Meanwhile, Bitcoin is trading at $3,789 after being rejected at $3,800 during the new year’s brief recovery. The asset is slightly in the red and correcting lower 0.87% on Wednesday 2. Bitcoin is not the only asset in the red, for example apart from Ethereum (ETH) and IOTA (MIOTA) which are trading slightly in the green with gains of 3% and 0.17% respectively.
Bitcoin recently broke out of a long-term descending channel. This move reversed the bear trend that had been dominating the market for a while now. While the retracement made it above $4,000, buyers lacked the power to keep the price above this level paving the way for a bear correction that recently tested $3,650.
The moving averages (50 SMA and the 100 SMA) playing catch up to the price which is making a weak bullish move with $3,800 in sight. The confluence detector provided by FXStreet shows that slightly above the current value is the initial hurdle at $3,837.73 If the price makes it above this level, BTC/USD will face another weak seller concentration at $3,916.33. A break above $4,000 is possible as long as the buyers can sustain the price above $3,800. However, Bitcoin will hit a wall at $4,270.02, a region that will also work as a breakout point towards $4,500 and eventually $5,000.
On the other hand, a support is highlighted at $3,719.83 while a second support area is available at $3,562.63. If the losses extended below this zone, Bitcoin will be on the breach of tumbling to $3,000 but before that there will a support at $3,405.44.
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.