The year 2024 is shaping up to be pivotal for the cryptocurrency industry, with Bitcoin‘s next halving event just four months away. The ecosystem data indicates that miners are preparing for a potential shock in the system. Additionally, the countdown to the possible approval of a spot Bitcoin ETF is in its final days, raising questions about what the future holds.
The BTC/USD pair started the new year within a positive range, with markets showing an uptrend towards the $43,000 level. Despite the volatility typically seen at year-end, no significant trend continuation was observed during the holiday period. Market participants, including investor and social media commentator Matthew Hyland, speculate that the ongoing lack of volatility could lead to a breakout surrounding the ETF decision.
Investor Crypto Tony expressed in his year-end analysis that he anticipates the formation of a symmetrical triangle in the coming weeks, which could lead to a significant move. He also noted that altcoins are becoming more of a focal point than Bitcoin, as Bitcoin’s dominance in the crypto market begins to wane.
The crypto community’s attention is currently fixated on the approval date of the U.S. spot Bitcoin ETF, which concludes on January 10. This potentially significant event has been shrouded in controversy for years. The process leading up to the approval of spot ETF applications has been unique, with ongoing surprises and continuous meetings with U.S. regulators reshaping the sector.
Tensions are high as the final application date approaches, with widespread belief that the announcement could trigger a “sell the news” event, causing Bitcoin’s price to drop immediately. Some analysts predict a long-term bearish trend starting this month, with targets often falling to the $36,000 level, while others, like the famous trader Il Capo of Crypto, see $12,000 as a realistic Bitcoin price level in the medium term.
The trading team Stockmoney Lizards expects a price correction in the mid-$30,000 range for the first quarter of 2024, as part of their annual predictions released on December 31. Despite adopting a more positive Bitcoin price perspective in recent months, they still foresee a new all-time high before the end of 2025. They also believe that Bitcoin’s growing reputation as digital gold and a store of value during economic downturns means that the current bull market is not likely to end soon.