Bitcoin Consolidates After the Run-Is It Preparing for the Next Upswing to $47,000?
The post Bitcoin Consolidates After the Run-Is It Preparing for the Next Upswing to $47,000? appeared first on Coinpedia Fintech News
The crypto markets have risen from consolidation and have been setting up a fine upswing since the beginning of the final quarter. In the past few days, more than $120 million in leveraged Bitcoin positions were liquidated, which raised the BTC price to over $44,400. Moreover, the token is close to undergoing the very first weekly Golden Cross, which is believed to trigger a fresh upswing in the coming days.
Bitcoin Supply Dwindles Ahead of Major Events
In late October, Bitcoin witnessed a major shift in market sentiments as the price reached levels above $34,000. The investors became optimistic about the future trend as both the short-term and long-term holders have drastically reduced their selling of BTC. This decrease in selling activity indicates both groups have begun to hold their assets, which may further reduce the supply in the market.
Besides, the reduction of supply in the market has coincided with growing expectations of the approval of a spot Bitcoin ETF. Also, it impacts the approach of the next halving, which traditionally increases interest in Bitcoin and also its value as demand rises with a decrease in supply. The decrease in sales from both short-term and long-term holders, combined with positive investor expectations, could create conditions for further increases.
The $45,000 Threshold-Turning Point for Bitcoin
The levels around $45,000 can be considered pivotal, as a large class of mid-term investors may get back into the profit range at these levels. These traders are holding the token regardless of the market variation. As the price is strongly approaching these levels, the main question arises whether the bulls may hold strength after achieving these levels or allow the bears to extract profit.
After holding the diagonal support for a while, the BTC price soon surged magnificently, surpassing the interim resistance zone. The price is consolidating within a narrow range, probably preparing for the next price action. As mentioned above, the levels at $45,000 are extremely crucial for the token to maintain its upswing, which may propel the Bitcoin price above $46,500 by the end of the year.
Filed under: Bitcoin - @ December 7, 2023 6:25 am