Bitcoin Price Analysis: Analysts Cautious as BTC Faces Potential Dip to $40,000 Soon?
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As Bitcoin captures the spotlight with a surge in buyer activity amid speculation around a spot Bitcoin ETF approval, analysts are adopting a more cautious tone, warning of a potential dip in the BTC price, with predictions pointing towards a temporary correction to $40,000.
Bitcoin Price Consolidation
A prominent crypto analyst Scott Melker has forecasted a consolidation pattern for BTC price, oscillating between the support level at $40,000 and resistance at $44,000 as the cryptocurrency enters the new year in 2024.
The Bitcoin Dip You HAVE TO BUY Is Coming https://t.co/0HqQG0NaKI
— The Wolf Of All Streets (@scottmelker) December 28, 2023
Notably, this prediction aligns with significant whale movements involving substantial amounts of BTC, hinting at a potential minor dip for the leading cryptocurrency.
Meanwhile, the trajectory of Bitcoin’s price in the coming quarter is expected to hinge on the U.S. Securities and Exchange Commission’s (SEC) decision regarding the approval of a Bitcoin ETF. The SEC is anticipated to announce spot ETF approvals by the tentative deadline of January 10, 2023.
Macro Events Influencing BTC Price
Zooming out to macro events, Bitcoin’s response to major announcements, particularly those from the U.S. Federal Reserve, may steer its price towards the support range of $40,000 in the first week of January.
Scott Melker’s analysis also raises the possibility of altcoins taking center stage during this consolidation phase, with signs of volatility observed in Chainlink (LINK) and Litecoin (LTC) prices in recent days, signaling early indicators of a potential altcoin rally. As a result, investors and traders may exercise caution in the period leading up to the January 10, 2024 deadline.
Post ETF Approval Senario
Looking beyond the potential dip, the approval of a spot Bitcoin ETF in January 2024 holds promise as a positive catalyst. Analysts speculate that the institutional influx could align seamlessly with the Bitcoin Halving event scheduled for the latter half of 2024.
This dual confluence of events raises expectations for an extended bullish momentum in Bitcoin’s price, marking a significant period in the crypto space.
Already, financial institution Standard Chartered has predicted that Bitcoin could reach $100,000 by the end of 2024. Additionally, Cathie Wood has provided a long-term projection, foreseeing Bitcoin reaching $1 million by the year 2030.
Filed under: Bitcoin - @ December 29, 2023 6:28 am