Bitcoin and the crypto market have been quiet over the last several days after bitcoin was rejected just under the $45,000 price level. Are we going to see this sideways and downward price action extend through the rest of 2023 as the announcement on the Spot Bitcoin ETF looms into view in early January?
With the Spot Bitcoin ETF announcement possibly less than three weeks away, the bitcoin price appears to have entered into a period of stagnant price action. Ever since bitcoin reached its local top of around $44,700, the next ten days have taken the price in a sideways and downward direction.
A fall to $36,000?
Source: Trading View
With this 10-day drop in price, $BTC has painted out an ominous M chart pattern. If this is indeed the path that $BTC is now following, and the M pattern does play out, the price would likely go down to the region of $36,000. Support can be found at $37,800 and then at $35,300.
Support breached?
Source: Trading View
In addition, zooming out further on the same daily time frame, it can be seen that $BTC is currently just dipping below the strong support at $41,000. $37,800 is the next strong support below.
CME gaps above and below
One last thing to bear in mind is that there is a CME gap that has opened below, which would require the price to go down to around $39,290 in order to close it. On the other hand, there is another gap above at $42,450, so expect $BTC to close both of these in its own good time.
The eye of the hurricane
It's still too early to say if the above scenarios will play out, but it could be that $BTC has now entered the eye of the hurricane, and that price action could range for the next 2 to 3 weeks. However, if that announcement in early January results in at least one ETF being granted, there is bound to be a huge amount of volatility. Trade safely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
