As the year draws to a close, investors who have been counting the days are now on the verge of counting hours, with high hopes for 2024, just as they had for 2023. The absence of Binance FUD, anticipated ETF approvals, the approaching Bitcoin halving, and expected interest rate cuts contribute to a positive outlook. Moreover, the recent PCE data indicates a continuing downward trend, adding to the optimism.
At the time of writing, Bitcoin’s price is above $43,700, bolstered by lower-than-expected PCE data, which fuels year-end optimism. Despite intermittent corrections since October, the cumulative value of cryptocurrencies has been steadily increasing, reaching a peak of $1.63 trillion on December 9th.
Following a divergence in the RSI, buyers re-entered the market on December 18th, reversing the market’s direction upwards. Currently, the cumulative value of cryptocurrencies is seeking new highs above $1.65 trillion.
If the upward momentum continues, the total value of all cryptocurrencies could see an approximate 20% increase, reaching a threshold of $2 trillion, potentially resulting in double-digit gains across altcoins and even doubling the price of some standout cryptocurrencies.
Should the cumulative value’s trend line break downwards, a pullback to $1.38 trillion could occur. Experts who believe in the “buy the rumor, sell the news” phenomenon associated with ETF approvals expect such a short-term reversal.
The monthly PCE is negative, and inflation is now at sub-zero levels, suggesting that the Fed could pivot from tightening to cutting rates sooner than expected, which supports risk markets. Meanwhile, Bitcoin hovers around the $43,700 region. Should Bitcoin break through the resistance line, it could target its second goal of $48,800. Conversely, a drop to $37,800 is anticipated in the opposite scenario.