Bitcoin Price Consolidates as Bullish Momentum Slows Down

• At the time of writing, Bitcoin is trading at $43,948, down 0.64% in the last 24 hours.
• If the price manages to go below $43,020 support level, then it will likely test $41,480 level.

Total crypto market cap has increased by over 110% YTD, adding over $870B, with a significant 55% gain in Q4 alone, according to a new analysis by Binance Research. This upturn may indicate a change in market patterns, after a long period of inactivity following the cryptocurrency market’s 2021 peak.

Even though El Salvador was an early adopter of Bitcoin as legal currency, only 1.72 percent of Salvadorans own the cryptocurrency, according to a research by CoinGecko. The people in El Salvador have not completely accepted digital money, as shown by the low adoption rate.

The Swiss city of Lugano announced on December 5, 2023, that it would begin accepting Bitcoin (BTC) and Tether (USDT) as payment for taxes and other local fees. This is a component of Lugano and Tether’s Plan B, which aims to reinvigorate the City’s financial sector.

Prior to these new advancements, the only way to pay with cryptocurrency in Lugano was via the official City website. Nevertheless, the potential is extended to all invoices, regardless of their kind or quantity, by the release.

Breakout Likely

At the time of writing, Bitcoin is trading at $43,948, down 0.64% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is down 30.04%. The price has been consolidating lately and looking to break out in either direction.

If the price manages to go below $43,020 support level, then it will likely decline further to test $41,480 level. However, if the bulls drive the price above $44,670 level, then it will likely rally further to test $47,100 resistance level.