As the year’s final weekend wraps up, investors are preparing for a brisk start to January without a moment’s respite. The focus is on Bitcoin (BTC) and Ethereum (ETH), and whether the recent uptick in the cryptocurrency market will persist. Current trends and price targets are under scrutiny, with Bitcoin’s market dominance slipping from 55% to 51%, indicating a shift of interest from the leading cryptocurrency to altcoins, especially after this week’s significant surges.
Bitcoin’s recent dip below the 20-day moving average at $42,597 has caused some investor unease. The possibility of a descending triangle breaking downwards is concerning, despite the potential for ETF approvals. Surprisingly, $1 billion in open positions were wiped out even in a bullish market, suggesting investors might be preparing for a “sell the news” event upon ETF confirmation. Whether Bitcoin will continue to make higher lows towards a new all-time high or face a downturn remains to be seen.
For Bitcoin, the bullish scenario for January anticipates a rise to test $49,178, provided it closes above $44,700. However, if the descending triangle breaks down, the price could fall towards $40,295 and possibly even to $37,980. The upcoming deadline for ETF file updates on December 29 hints that ETF approvals might be reaching their final stages soon.
Ethereum, on the other hand, closed above a descending triangle formation on December 27 but failed to advance to the next stage of its uptrend, falling back below $2,300 due to Bitcoin’s decline. The ETHBTC chart had been promising, but 2023 didn’t unfold as expected for Ethereum.
ETH is facing strong selling pressure between $2,403 and $2,445, a hurdle the bulls have yet to overcome. If resistance is broken, a target of $3,000 could be in sight. Conversely, closing below $2,269 could lead to a decline towards $2,000 and potentially down to $1,900.
In summary, the cryptocurrency market is at a critical juncture with Bitcoin and Ethereum facing potential turning points. Investors are advised to keep a close watch on the market as these leading digital assets approach key resistance and support levels, with regulatory developments like ETF approvals potentially acting as catalysts for the next major price movements.