Bitcoin Price Consolidates As Stubborn $38k Resistance Threatens Liquidity Sweep At $33k, Are Dips Profitable?
Bitcoin (BTC) price hit a new yearly high at $38,500 on Tuesday but retraced to $37,735 on Wednesday during US business hours. The many failed attempts to break resistance at between $38,000 and $39,000 are a buzz kill, especially for traders and investors betting on a larger breakout above $40,000 before the year ends.
Bitcoin Price Consolidating
Bitcoin price is leading markets in the ongoing consolidation which analyst and investor Michaël van de Poppe believes could result in a sweep through liquidity in a lower support range between $33,000 and $35,000.
Markets are consolidating.
Giving opportunities, still no breakout of #Bitcoin above $38K.
If we continue to make higher lows, higher highs, a breakout seems to be happening soon.
Structure lost?
Buying at $33-35K.
— Michaël van de Poppe (@CryptoMichNL) November 29, 2023
CryotoBusy, another widely followed analyst on X shared a similar outlook with Bitcoin consolidating within a wedge pattern for the last 30 days.
Since the Relative Strength Index (RSI) on the daily chart holds above the oversold region, it implies that a catalyst is required for Bitcoin to make a parabolic move.
This catalyst could be the approval of spot Bitcoin exchange-traded funds (ETFs). However, some market participants are starting to accept the idea that the Securities and Exchange Commission (SEC) is targeting January 2024 to approve a bunch of ETFs.
The SEC is expected to decide on the ETF proposals in December but there is a higher probability of the agency delaying the much-awaited decision until January.
The SEC’s Latest #Bitcoin Spot ETF delays now may be a good sign for a FULL WAVE OF APPROVALS in January 2024!#HODL pic.twitter.com/Cumsx5OC3k
— CryptoBusy (@CryptoBusy) November 29, 2023
Bitcoin price sits on top of solid support in the grey band on the four-hour chart. The current bearish outlook follows a rejection from highs around $38,500. With the RSI almost sliding below the midline in the neutral region, the path with the least resistance will likely remain downwards, at least in the short term.
The 50 Exponential Moving Average (EMA) (red) holding below the grey zone could help absorb the selling pressure. However, the breakout might still overwhelm the bulls, paving the way for declines targeting the accelerated ascending trendline (dotted) which coincides with the 100 EMA (blue).
If a rebound takes time to materialize, sellers may seize the moment by shorting Bitcoin price to profit as dips extend to the long-term ascending trendline. Further losses below this support could mean that Bitcoin plunges to sweep liquidity in the range between $33,000 and $35,000.
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68% of Bitcoin Holders In Profit
The recovery from early October has elevated up to 68% of Bitcoin holders into profit based on blockchain data from IntoTheBlock using the In/Uot of Money metric.
It can be deduced from the chart below that strong support sits between $35,931 and $37,077. Losses below this range are unlikely to be aggressive because most investors would jump on the opportunity to buy the dip with the promise of significant rallies due to the potential greenlighting of spot ETFs and the miner rewards halving in April 2024.
Bitcoin’s hashrate $BTC reached an all-time high this month.
An increase in hashrate indicates an influx of new miners onto the network, correlating to a strong and growing network.
The surge in hashrate is attributed to Ordinals and the upcoming Halving.
The In/Out of Money… pic.twitter.com/6EWewkOenw
— Slim Daddy◻️𓃵 ₿ (@felixreads) November 29, 2023
The soaring hashrate on the Bitcoin network hints at an influx of miners. A higher hashrate signifies a stronger network which is often considered a bullish thesis for Bitcoin.
Therefore, while a correction to $33,000 is likely, it could usher in a bullish dispensation for Bitcoin price going into 2024.
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