Bitcoin Price Rallies on Speculation of Spot ETF Approval

Bitcoin Price Rallies on Speculation of Spot ETF Approval

Bitcoin’s price has experienced a resurgence following rumors of the approval of a spot ETF. The cryptocurrency broke out of a major declining channel on the 4-hour chart, surpassing the $43,000 resistance level. This bullish movement has signaled a potential upward trend.

After breaking multiple hurdles, including the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours), Bitcoin reached a multi-week high of approximately $45,562. The price is presently consolidating gains, preparing for another potential rally. A significant resistance level lies at $46,200, with the next resistance set at $48,000. A successful close above the $48,000 level could initiate a substantial increase, bringing the price closer to $50,000.

While the current momentum favors a bullish scenario, there remains a possibility of a downside correction. Immediate support is seen at around $44,750, with a more substantial support level at $44,350. Sustained losses could drive the price towards the $43,000 level.

In addition to the market factors influencing Bitcoin’s price, the release of economic data may also impact its trajectory. In the Euro Zone, the Manufacturing PMI for December 2023 is forecasted to be 44.2, with no change from the previous period. Similarly, the UK Manufacturing PMI for the same period is estimated to remain unchanged at 46.4.

However, the US Manufacturing PMI for December 2023 is expected to remain at 48.2, which may introduce some volatility into the cryptocurrency market. Traders and investors should closely monitor this data as it can influence Bitcoin’s price movement in the coming days.

Bitcoin’s recent rally on rumors of a spot ETF approval has provided optimism for investors. Breaking through resistance levels, the cryptocurrency has surged to a multi-week high. While potential upside targets exist at $46,200 and $48,000, caution should be exercised, as downside risks remain. Economic releases, particularly the US Manufacturing PMI, could also impact Bitcoin’s price behavior. As always, traders and investors should stay vigilant and monitor these factors to make informed decisions in the volatile cryptocurrency market.

Technical Analysis

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