Bitcoin‘s price surged above $43,000 on December 19th, influenced by news regarding the United States’ first spot Bitcoin Exchange-Traded Fund (ETF), but faced selling pressure that brought it down to $42,252. At the time of writing, it was trading at $42,547. The market is now looking ahead to what the future holds for Bitcoin.
The week began with uncertainty for Bitcoin, but the BTC/USD pair quickly gained momentum, closing the day’s candle 5% above its lowest point. Asset manager BlackRock, one of the applicants for launching the first US spot Bitcoin ETF, updated its service policy to include Bitcoin as an option, sparking interest in the market.
The US Securities and Exchange Commission (SEC) is expected to make a final decision on the spot ETF by early January 2024. Many Bitcoin price predictions are hinging on a successful application approval. Investor and analyst Bob Loukas shared his optimism with his followers, suggesting that the SEC’s involvement and adjustments indicate a nearly complete deal.
Amid these developments, Bitcoin faces a potentially volatile period with the year-end candle closing and the holiday season. Investors continue to draw lines both above and below the spot price, with the possibility of a dip below $40,000 still in discussion. Crypto Ed, founder of the trading group CryptoTA, predicted a final surge before a potential drop, which could send BTC/USD to $50,000 before the end of 2023.
Popular investor and analyst Matthew Hyland remained optimistic about further price increases due to a bullish divergence in Bitcoin’s daily Relative Strength Index (RSI). The daily RSI dropped to 60.45 after cooling down from overheated levels, following Bitcoin’s recent rise to its highest level in 19 months at over $44,000.