Bitcoin price prediction as the coin takes a breather from the post-ETF sell-off below $39,000 but to affirm the uptrend, BTC must make several consecutive closes above $40,000.
Published 6 hours ago
Bitcoin price prediction: BTC is fighting to secure its position above $40,000 backed by a modest recovery from the recent dive below $39,000. BTC led the entire crypto market on a rabbit hunt following the approval of spot Bitcoin ETFs in the US on January 10. While a brief rally propelled the largest crypto to $49,000 an unexpected sell-off left most investors bleeding profusely.
If BTC price established support above $40,000 before the end of the US session, this week could end on a positive note with gains closing the gap to $50,000.
However, it would be advisable not to jump the gun and go all-in on Bitcoin until bulls and bears resolve the ongoing tug-of-war.
Bitcoin Price Prediction: Is BTC Ready Close In On $50,000?
Bitcoin has been accepted back into the range with support at $40,000 and resistance at $42,000. Consolidation is expected within these limits in the coming days while traders bet on a continuing rise toward $50,000.
The Relative Strength Index (RSI) although neutral at 39, reveals that the uptrend will not be straightforward, at least for now. Traders should be careful to avoid sudden corrections likely to culminate in bull traps.
Remember, Bitcoin holds below two critical moving averages; the 20-day Exponential Moving Average (EMA) (in blue) and the 50-day EMA (in red). With this negative outlook in play, it could take time before the uptrend to $50,000 is confirmed.
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Based on the Money Flow Index (MFI), an indicator used to track the flow of money into and out of Bitcoin, buyers have the upper hand. However, for more commendable results, the index must keep moving higher above 30.
As speculated by many analysts like @CryptoMichNL, the area between $36,000 and $38,000 is of importance to Bitcoin. Thus, if Bitcoin fails to make headway above $40,000 this week, there is an undeniable possibility of sliding back to test this range.
#Bitcoin approaches crucial level of support as the $36-38K is an important one, which I’d refer to as the range low.
Meanwhile, sentiment is flipping towards a negative manner, as people are worried about the future perspectives.
Good things.
Buy the dip. pic.twitter.com/pt4d4k5Vdv— Michaël van de Poppe (@CryptoMichNL) January 24, 2024
Despite the potential correction to $38,000 and $36,000 likely to spook investors, it would be an impactful accumulation region. In other words, we could see more investors dollar-cost averaging (DCA) throughout these levels, in turn, building the momentum for a larger rebound.
Will BTC Rally To Hit ATH
The current pullback followed a sell-the news event, as investors reacted to the ETF. Since markets do not correct forever, and with the halving narrative soon to begin, a major rebound is anticipated over the coming months.
Bitcoin halving occurs every four years and this time it is expected to fall in April. The event slashes miner rewards by half, significantly reducing the supply of new coins entering the market.
As supply dwindles, demand will increase and even more significantly with the the launch of spot ETFs. As has been the outcome of previous halving events, Bitcoin price has the potential to hit a new all-time and perhaps explode above $100,000.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/bitcoin-price-prediction-today-24-jan/