As the year 2023 draws to a close, Bitcoin (BTC) has demonstrated the expected performance but has opted for a calm approach as the annual closure approaches. Meanwhile, Ethereum (ETH) has made more modest gains. Investors who have reaped significant returns from various altcoins throughout the year are now eagerly awaiting the halving year, which will also kick off with the excitement of a potential spot Bitcoin ETF in 2024.
Bitcoin experienced a sharp rise in 2023 from its November 2022 low of $15,460. After surpassing $17,000 following an announcement between AVAX and AWS, BTC’s trajectory maintained an upward direction despite fluctuations throughout the year. The bulls unexpectedly overcame the $31,800 and $36,000 resistance levels, but BTC faced a challenge at the $44,700 level, marking its first red candle in eight weeks. However, the RSI remains strong, indicating bullish targets above $48,000 are still relevant.
If BTC does not fall below the 20-day moving average of $34,000, the $52,100 level could be tested in January. A rally beyond this point would indicate the completion of the formation and potentially lead to a new all-time high (ATH) target of $88,740. Bears are expected to mount a strong defense at the last ATH region of $69,000, but historically they have not been able to hold back such movements. Conversely, a close below $41,300 could lead to a sell-off down to $32,000.
ETH, on the other hand, has risen sharply from its June 2022 low of $880, but investors are still waiting for satisfactory profits. While most altcoins have nearly tripled in price, ETH lingers around $2,200 despite a BlackRock ETF application. The volume fiasco of futures ETFs plays a significant role in this contrast.
Bulls are trying to keep the ETH price above $2,143, with a rising triangle pattern forming. The target of this pattern is $3,406, and if the increase continues, the levels of $4,000 to $4,868 could be tested in 2024. However, a close below $2,143 could trigger a pullback to $1,900, and panic selling would not be surprising.