Bitcoin Holds Strong at $40,000 Amid SEC ETF Anticipation
Bitcoin (BTC) continues its upward trend despite early Asian trading hours witnessing severe downturns. The anticipation around the U.S. Securities and Exchange Commission (SEC) approving cryptocurrency exchange-traded funds (ETFs) plays a significant role. Google even hints at this, stating that "advertisers offering cryptocurrency trust funds targeting the U.S. [will be allowed] to advertise those products and services" starting January 29, 2024. Notably, this aligns with the expected approval of Bitcoin exchange-traded funds (ETFs) in the U.S. during the same month.
Bitcoin's price bouncing back to the $40,400 low is a healthy reassessment, with the $40,000 psychological level holding as support. If this level remains steady, the idea of a new all-time high could emerge.
While the potential for price increase remains strong for Bitcoin, the Relative Strength Index (RSI) has yet to surpass 70. However, the Awesome Oscillator (AO), displaying significant green histogram bars, indicates the bullish presence remains robust. The RSI may simply stay above 70.
Increased buying pressure at the current level could drive Bitcoin to break through the weekly supply zone ranging from $40,698 to $46,999. A weekly candle closing above the $43,860 moving average will confirm the continuation of the uptrend.
Such a move would set the stage for Bitcoin to turn the weekly supply into a trend-breaking tool, confirmed by action above the $48,725 resistance. In the case of a strong uptrend, Bitcoin may extend to challenge the $66,098 resistance, turning it into support. Conversely, if the weekly supply is defended as a significant resistance zone, Bitcoin may head south, breaking the $40,000 support. A weekly candle decisively closing below this level could push BTC into a downward spiral, possibly testing the $30,000 psychological level.
Bitcoin's price bouncing back to the $40,400 low is a healthy reassessment, with the $40,000 psychological level holding as support. If this level remains steady, the idea of a new all-time high could emerge.
While the potential for price increase remains strong for Bitcoin, the Relative Strength Index (RSI) has yet to surpass 70. However, the Awesome Oscillator (AO), displaying significant green histogram bars, indicates the bullish presence remains robust. The RSI may simply stay above 70.
Increased buying pressure at the current level could drive Bitcoin to break through the weekly supply zone ranging from $40,698 to $46,999. A weekly candle closing above the $43,860 moving average will confirm the continuation of the uptrend.
Such a move would set the stage for Bitcoin to turn the weekly supply into a trend-breaking tool, confirmed by action above the $48,725 resistance. In the case of a strong uptrend, Bitcoin may extend to challenge the $66,098 resistance, turning it into support. Conversely, if the weekly supply is defended as a significant resistance zone, Bitcoin may head south, breaking the $40,000 support. A weekly candle decisively closing below this level could push BTC into a downward spiral, possibly testing the $30,000 psychological level.
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