Bitcoin Consolidation Anticipated, Breakout Expected Amidst ETF Buzz

Recent Bitexch market analysts are fervently anticipating the approval of Bitcoin Spot Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) in January 2024. According to them, the prospect of this regulatory nod is poised to serve as a catalyst, propelling Bitcoin to soar beyond the $50,000 mark by the close of January 2024.

Observers have taken note of a trend among investors who are positioning themselves strategically ahead of the potential ETF approval. Many have diversified their portfolios by acquiring shares in Bitcoin mining enterprises and other crypto-related stocks, effectively treating them as proxies for exposure to the impending market development.

Drawing parallels from historical instances, such as the launch of Bitcoin Futures by the CME Group in 2017, analysts highlight the precedent of significant price escalation leading to such events. In the six to seven weeks between the confirmation of CME’s Bitcoin futures launch and the commencement of trading, Bitcoin prices experienced an impressive upswing, registering an impressive +196%.

Bitcoin chart | Period: CME’s Bitcoin Features launch, 2017 | Source: Bitexch

Forecasting Bitcoin’s Short-Term Trajectory

Initially projecting a consolidation period from December 8 until potentially the year’s end, analysts have adjusted their expectations. The current outlook suggests that Bitcoin might be on the cusp of a breakout. Historically, the period between Christmas and New Year’s has gradually increased +3% in Bitcoin prices. Nevertheless, outliers have been observed in 2011, 2013, and 2020, with price surges reaching as high as +22%.

Various applicants are already rolling out television commercials in line with the typical marketing strategies employed for ETFs. This advertising push is expected to intensify over Christmas as contenders vie for dominance in the ETF space. Analysts predict this marketing surge will support Bitcoin prices, heightening the likelihood of a breakout during the festive season.

In light of these developments, analysts express a firm expectation that Bitcoin has a high probability of breaking higher during Christmas. The overarching anticipation is that should the SEC grant approval for Bitcoin Spot ETFs.

is poised to breach the $50,000 threshold, marking a significant milestone for the leading cryptocurrency.

Source: https://blockchainreporter.net/bitcoin-consolidation-anticipated-breakout-expected-amidst-etf-buzz/