In the midst of a period of consolidation and oscillations, Bitcoin (BTC), the main cryptocurrency in the market, has shown significant movements during this week from December 18 to 22 towards the end of 2023.
Starting the week around the key support of $40,500, Bitcoin had just faced strong resistance after an abrupt rejection by sellers on December 11, after reaching a high of $44,600.
The consolidation trend continued during the first days, with levels around $40,500 and $40,000 acting as accumulation zones, marking a new level for the asset’s price.
However, on Monday, December 18, Bitcoin attempted to break the $40,800 support, but was rejected by buyers, driving the price sharply higher, to around $43,400.
This initial momentum on Monday led Bitcoin to record new highs and higher lows throughout the week, challenging the bearish trend line that the price had been following and breaking it, relying on the main support of $41,800.
It was observed in our closing analysis of the week, the formation of a new bullish channel , although with resistance found in the $44,300 area , the asset is currently trying to sustain the immediate supports of $43,600 and $43,200 dollars.
Bitcoin (BTC) currently stands at $43,477, reflecting a slight decrease of -0.90% in the last 24 hours, according to official data from CoinMarketCap.
In a broader context, the cryptocurrency has seen 3% growth in the last week, marking a solid 19% growth in the last month.
This spectacular performance translates into a notable 158% increase over the course of the last year, demonstrating the resilience and continued attraction of Bitcoin as a financial asset.
During this week in Bitcoin analysis, a significant event has been observed in the exponential moving averages, particularly in the Weekly Time Frame, known as the “Golden Cross”.
This technical phenomenon, which occurs when the short-term moving average crosses above the long-term moving average, has caught the attention of several crypto market analysts.
The Golden Cross on a weekly time frame is considered an important technical signal as it suggests a possible long-term trend change and is often interpreted as a bullish signal by traders.
This crossover, added to other technical indicators, adds an interesting element to the panorama of Bitcoin technical analysis this week.
During The Week, news relevant to Bitcoin related to ETF’S emerged
On the one hand, it was announced that the US government would extend the deadline for Ethereum exchange-traded funds until the middle of next year.
News that could have hit the market hard, went quietly unnoticed, with the crypto market showing resistance and a certain indifference to these headlines about ETH.
In parallel, Bitcoin has been at the center of speculation this week, as rumors emerged about the possible green light for a Bitcoin ETF before the January 10 deadline, set by the US government.
These rumors have fueled investor interest, generating a significant increase in FOMO (fear of missing out) in the crypto market.
Despite these encouraging rumors, experts warn about the importance of exercising caution.
Historically, announcements of this nature have triggered volatility in the market, sometimes followed by a sell-off if expectations are not met.
In view of this possible news, the need to maintain constant vigilance and a strategy based on the identification of solid supports is highlighted.
It is crucial to prepare for any eventuality, especially if the current bullish formation fails to hold, considering the volatility associated with such events in the past.