With sideways and downwards price action over the Christmas period, it looked as though bitcoin might be getting ready for a correction. None of it! The new year dawns, bitcoin makes a new yearly high, and the price continues to climb.
Excitement continues to grow as the expected approval of the very first Spot Bitcoin ETF in the US draws nearer. With everyone in such a state of fermented expectations, how could the bitcoin price do anything but go up?
A decisive break
Source: Trading View
In the short time frame the break is clear to see. $BTC had been traversing inside an ascending triangle since early December. When it reached the bottom trend line and then held it for 3 or 4 days, the next move was a daily candle that took $BTC back to the top trend line, and then on Tuesday the triangle was broken decisively, and the price is continuing skyward at time of going to press.
Hugely important level of $48,000 ahead
Source: Trading View
At this rate, $BTC looks poised to hit resistance and the 0.618 fibonacci level at $48,000. At that point surely bitcoin will need to catch its breath, considering the importance of this level, and also, just how far it has come over the last year.
However, the market will decide this, and given the sheer amount of hype over the ETF and the fact that the traditional financial system looks like it could melt down at some point during 2024, many wealth managers will be keenly looking at adding bitcoin to their portfolios in order to protect themselves.
Not a good time to jump onboard
For small-time investors who have noticed bitcoin’s meteoric rise, and may be looking to jump on the train, a warning must be given. Nothing goes up in a straight line forever. Now is probably a time for patience. A correction is likely in the not too distant future and lower prices to jump on board will surely come.
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.
