Technical analysis in the cryptocurrency market is indicating a rare event that has historically led to significant price movements for Bitcoin (BTC). Despite the volatility caused by speculative selling, Bitcoin’s price continues to challenge the $47,000 level. Analysts are closely monitoring the convergence of moving averages, a phenomenon not seen since 2016, which previously heralded a rally to Bitcoin’s all-time high of $20,000 in December 2017.
The analyst known as Moustache has highlighted the potential for an upcoming rally, focusing on the crossover of the 21-period exponential moving average (EMA) over the 50-period simple moving average (SMA) on a three-week timescale. This bullish signal is further reinforced by the anticipation of the United States approving its first spot Bitcoin exchange-traded fund (ETF) within approximately 24 hours.
Amidst the excitement in the markets, Moustache also noted a ‘buy signal’ from the super indicator, urging investors to pay attention to these rare signals. The current price levels of Bitcoin are reminiscent of April 2022, with various indicators, including the Relative Strength Index (RSI) and Bollinger Bands, suggesting a continued uptrend.
However, some experts, like Il Capo of Crypto, who has experienced significant losses after incorrect predictions for the 2023-2024 period, are anticipating a downturn. This is mainly based on the expectation that the SEC might reject the Bitcoin spot ETF, citing that Bitcoin is not yet suitable for such a financial product.
Il Capo of Crypto expects a pump in the market following the ETF news, predicting Bitcoin to reach $48,000-$50,000 and Ethereum to hit $2,500-$2,600, followed by a significant local peak. After which, he plans to open swing short positions targeting new lows, focusing on the $30,000 region for Bitcoin. This bearish outlook is partly due to assumptions about the potential negative impact of the Binance case, although a settlement in November caught many by surprise.