With Bitcoin (BTC) hovering around $42,850, the cryptocurrency has faced a challenging phase in recent weeks, characterized by bearish compression.
After technically analyzing the asset, we highlight that during the last time, BTC has remained in a descending channel, created after three failed attempts to exceed the $44,200 mark.
The subsequent negative at these levels pushed the price lower, reaching a low of $41,700.
It is important to note that the support around $42,000 to $41,800 temporarily stabilized the price to return to the ceiling of the established bearish channel.
Bitcoin (BTC) remains at $42,851.81 according to CoinMarketCap, with a slight increase of 0.19% in the last day.
Over the course of the last week, it has seen a growth of 2.16%, while in the last month it has increased by 12.28%.
In the last year, the asset has recorded an impressive increase of 157.64%.
This scenario represents a critical moment for the price of Bitcoin
It could mean an accumulation phase or, on the contrary, signal a possible fall towards more solid support levels.
Market volatility exacerbates the situation, intensified by the upcoming January 10 deadline.
On this date the US government is expected to decide on Bitcoin-linked exchange-traded funds (ETFs).
The $44,200 resistance level turned out to be formidable, and BTC inability to overcome it led to the formation of a bearish trajectory.
The support zone between $42,000 and $41,800 remains a crucial area to watch, possibly indicating the short-term trajectory of the cryptocurrency.
The impending decision on Bitcoin-related ETFs adds a layer of doubt to the market.
Investors are closely watching how this regulatory decision could influence market sentiment and Bitcoin price dynamics.
Additionally, the current market landscape shows a more mature derivatives market, especially in Bitcoin and Ethereum options.
Institutional participation has increased, introducing diverse strategies and products.
This influx of institutional interest could have a profound impact on Bitcoin’s price action in the coming days, especially in light of the impending ETF decision.
As Bitcoin flounders within this critical technical landscape, traders and investors remain in suspense, awaiting resolution of the impending regulatory decision.
The market response to this crucial event will likely set the tone for Bitcoin’s trajectory for the foreseeable future.
