Investors in the cryptocurrency market continue to focus on the process of spot Bitcoin ETF applications, with the United States Securities and Exchange Commission taking steps that have drawn criticism. However, investors are setting their sights on a potential ETF approval by January 2024. Meanwhile, Bitcoin has once again surpassed the $40,000 resistance level, renewing investor optimism for what’s next in the market.
A narrowing wedge formation on the two-hour Bitcoin chart has caught the attention of analysts. On December 19th, Bitcoin failed to achieve the desired rise after breaking the resistance line and encountered selling pressure below the EMA 200 (red line). However, it managed to recover from the support level within the formation, and the closing bars remained as a bear trap. Bitcoin has now successfully closed above the EMA 200 level and has crossed the $40,000 resistance.
For Bitcoin, the short-term support levels to watch are $43,007, $42,406, and $41,814. A bar closing below the $43,007 level, which has recently acted as resistance, could create selling pressure for Bitcoin.
On the flip side, the resistance levels for Bitcoin in the short term are $44,124, $44,749, and $45,292. Notably, a bar closing above the recent high of $44,749 could lead to a momentum increase in Bitcoin’s price.
The technical analysis of Bitcoin’s chart suggests a dynamic interplay of support and resistance levels, with the potential for further gains if the cryptocurrency can maintain its position above key thresholds. The market is watching closely as Bitcoin’s price action continues to unfold, with the possibility of an ETF approval adding to the anticipation for 2024.