The cryptocurrency king, Bitcoin (BTC), is enjoying a calm week, avoiding significant losses, while altcoins celebrate double-digit gains. BTC remains stable with increasing volume, shifting liquidity towards altcoins, providing hope for investors.
Bitcoin’s price hovers above the critical threshold of $42,500, maintaining this level for now. The recent CoinShares report highlights continued institutional interest with ongoing net inflows. The resistance at $44,179 has been a recurring challenge, with the price attempting to surpass it throughout December, only to be thwarted by the rising resistance line from the June 21 peak.
The current upward trend line is at $42,257, last tested on December 18, followed by a rebound towards resistance. If history repeats, the frequently tested resistance level may be targeted for a breakthrough this time.
As the first week of January concludes, a breakout is anticipated for the constricted BTC price. With the earliest ETF approval date set for January 8, a sustained demand could push prices towards a trial at $47,600.
Conversely, the main support at $40,631 could be tested, and closures below $40,325 might suggest a potential retreat to $35,200. In a “sell the news” scenario over the next few weeks, this could be the target.
We previously mentioned the rising support trend line tested multiple times since the beginning of 2023. If we are at the start of a bull season, long-term closures below this trend should not occur. Accordingly, prices above $52,000 might become the norm for BTC by February, although predictions are not certain and technical analysis does not guarantee future outcomes. Nonetheless, short to mid-term price performance and January news flow are steering investors away from pessimism.