Bitcoin continues to consolidate above a key resistance level, indicating a potential bullish move. Speculation is growing that the first Bitcoin spot ETFs in the US could be approved in the near future, with some expecting a decision as early as January 5th. However, financial advisors are more skeptical, and the majority do not believe ETFs will be approved this year. Despite this, crypto enthusiasts remain optimistic, with almost 90% anticipating approval.
Looking at the weekly timeframe, BTC’s price has been on an upward trend since the start of 2023. The rise accelerated as the relative strength index (RSI) entered overbought territory, similar to a previous bullish cycle. Currently, BTC is trading above important horizontal resistance and Fibonacci levels, indicating potential further gains.
On the daily timeframe, there is a mixed picture. Elliott wave analysis suggests that the price has completed the fourth wave of a five-wave upward movement, potentially leading to a significant upward move. However, the daily RSI has formed a bearish divergence, signaling weakness. It’s worth noting that BTC has already declined since the divergence, so this bearish signal may have already played out. If BTC breaks out bullishly from its current channel, it could rise by 15% to the next resistance level at $50,800.
A noteworthy fractal from November 2020 reveals a similar pattern, with BTC completing a fourth wave in an ascending parallel channel before a bullish breakout and parabolic rally. This occurred around the same time the weekly RSI entered overbought territory.
However, a bearish breakout from the channel would indicate ongoing correction, potentially leading to a 14% decline to immediate support at $37,800.
Ultimately, the fate of BTC’s price will depend on various factors, including the potential approval of ETFs and market sentiment. Traders and investors should closely monitor these developments to make informed decisions.
Source: TradingView
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