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Bitcoin price triggers bullish trades at $44,000; QCP Capital hints at early spot BTC ETF approval

  • Bitcoin price breached $44,000 during the intra-day highs before dipping to $43,350 at the time of writing.
  • QCP Capital predicted that the spot BTC ETFs could be announced at market close on January 5 or by January 8.
  • The market is highly bullish, with BTC notching $100 million worth of call options on Wednesday as the price rallied.

Bitcoin price is awaiting stimulus, which will now only come when the spot ETF approval gets closer. This might not be too far away, as per QCP Capital, which also predicts the cryptocurrency could shoot up by nearly 11% right after.

Spot Bitcoin ETF approval may come earlier than expected

In a market update on December 21, the crypto asset trading firm QCP Capital forecasted that the spot Bitcoin ETF approval could be announced as soon as the market closes on January 5. The next best bet is by January 8, which is slightly before the official deadline of January 10.

Bullishness surrounding the event is expected to be a major catalyst for the cryptocurrency. This might drive Bitcoin price to $45,000 to $48,500, according to the prediction. This places the likely rally over the next month at 11%, though a rise to $50,000 is also on the cards if investors hold on from booking profits immediately following the rise in price.

Traders are already acting bullish even though BTC barely crossed $44,000 yesterday. The intra-day trading high saw Bitcoin price breach the key resistance and reach $44,266 before falling back down to $43,350.

This is evinced by the increase in call options following the intra-day high on Wednesday. As noted by Greeks.live, block trades worth over $100 million were registered in the hour of Bitcoin price crossing $44,000, which is a bullish sign as it shows that traders are only waiting for a bull run initiation to make their move.

Bitcoin call trades

Bitcoin call trades

Bitcoin price remains in consolidation

Bitcoin price has been swinging within the $41,000 and $44,000 range for the past two weeks, failing to breach through the latter while still keeping above the former. This consolidation is not surprising as the market was bound to cool down following the recent rally and before BTC began rising again in the new year.

Price indicators are also presenting mild bullishness on the short-term timeframe, suggesting the cryptocurrency might see a fallback to $42,000 before it can flip $44,000 into a support floor. If this happens, investors would likely see $45,000.

BTC/USD 8-hour chart

BTC/USD 8-hour chart

However, if the cryptocurrency falls through the $42,000 and loses the support of $41,000 as well, it would crash to $40,000, invalidating the bullish thesis and leaving BTC stuck in consolidation for a while longer.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

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