Despite a recent surge due to speculation on the approval of the first spot Bitcoin exchange-traded fund (ETF) in the US, Bitcoin (BTC) struggles to surpass the key resistance level below $45,000. The market sentiment is largely bullish, anticipating a significant rally that could surpass all-time highs.
Crypto expert Tradingshot identified $48,500 as a critical threshold for Bitcoin in an analysis on TradingView. Surpassing this level could trigger a parabolic rally. The analyst highlighted Bitcoin’s significant mid-cycle growth over the past two months, approaching the crucial $50,000 mark. A break above the $48,500 resistance could signal the start of a parabolic phase in the bull cycle.
Tradingshot used the Pitchfan technical analysis tool to visually depict the significance of Bitcoin’s current market movement exceeding its peak. Historical patterns suggest that resistance breakouts in the Bitcoin market often coincide with the block reward halving, a fundamental event typically marking the start of a new record-setting rally.
With the block reward halving just four months away, the analyst emphasized that any pullback to the MA50 (50-day moving average) on the daily timeframe represents a significant buying opportunity for investors employing Dollar Cost Averaging (DCA) strategies.
Bitcoin shows signs of short-term consolidation but remains much stronger compared to 18 months ago, bolstered by ETF speculation. Experienced crypto analyst CrediBULL Crypto noted that while ETF anticipation and approval could lead to a buying frenzy, the actual approval might result in a “buy the rumor, sell the news” scenario.
Current market sentiment continues to indicate potential long-term holding behavior for Bitcoin. Data from the on-chain data platform CryptoQuant shows that Bitcoin reserves on exchanges have reached their lowest level in several weeks, suggesting investors are focused on future gains. In December, the amount of BTC on central exchanges hovered around 2.04 million, with over 33,000 Bitcoins withdrawn in the last 24 hours, leading to the lowest reserve levels in a week and pushing withdrawals above 2 million.