As we near the end of 2023, the pace of time seems to slow with the excitement of Exchange-Traded Funds (ETFs), and some investors feel as though they’ve been in December for two months already. However, there’s no need to worry; by next Monday, we will have stepped into the new year, and in ten days, the final decision on ETFs will be announced. During this period, expectations for Bitcoin (BTC) and Ethereum (ETH) are of particular interest.
Throughout December, BTC has largely maintained its gains, indicating investors’ willingness to buy the dips. CoinShares data from the past week reveals a significant inflow of $87.6 million into Bitcoin funds, suggesting strong appetite from both centralized exchanges and institutional investors.
With no major unsettling developments on the macroeconomic front, the sentiment for the week favored a rise in altcoins, which is currently unfolding. Bitcoin is fluctuating between the 20-day exponential moving average of $42,513 and the resistance level of $44,700. A breakout above this range could potentially extend a rally toward $49,178.
Investor sentiment is buoyed by news flow suggesting an upward trajectory. Conversely, a close below $44,022 could accelerate sell-offs toward $37,980 and $35,200.
The anticipated ETH rally is expected to commence soon. Recent discussions have touched on the possibility of an upward breakout in the ETHBTC pair. If this occurs, ETH prices are expected to surpass $3,100. A shift in liquidity towards altcoins could eventually lead to a greater focus on Ether, supported by several positive indicators such as negative inflation and increased network activity.
ETH bulls maintaining support at $2,200 is a positive sign, similar to BTC’s outlook. Strong buying on December 27th pushed the price above the descending channel. If bulls can sustain prices above this channel, a continued rally above $2,403 is likely. In the event of a loss of support, a downward trend to $1,900 and $1,750 is anticipated. These are the dual scenarios expected for the two major cryptocurrencies by the year’s end.
