Bitcoin’s parabolic rally could begin if this resistance is breached
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Bitcoin (BTC) is grappling with key resistance below the $45,000 mark despite a recent surge linked to speculation about approving a spot exchange-traded fund (ETF) in the United States. This comes as the prevailing market sentiment suggests that Bitcoin is poised for a potential rally, aiming to reach a new all-time high. In line with this, an analysis by crypto trading expert Tradingshot, posted on TradingView on December 29, highlights that Bitcoin’s parabolic rally may be imminent if it successfully breaches the significant resistance at $48,500. Tradingshot observed that Bitcoin has witnessed substantial mid-cycle growth over the past two months, edging closer to the pivotal $50,000 level. The expert emphasized that surpassing the $48,500 resistance could mark the commencement of the parabolic phase of the bull cycle. Bitcoin price analysis chart. Source: TradingView “Bitcoin (BTCUSD) has seen a significant mid-cycle growth in the past 2 months, approaching the pivotal 50k level. Technically a break above the 48.5k resistance constitutes the beginning of the Parabolic Phase of the Bull Cycle,” he noted. To visually depict this transition, the analysis utilized the Pitchfan tool to represent cycles, highlighting Bitcoin’s current market movement stage. According to the expert, historical patterns indicate that resistance breakouts in the Bitcoin market often coincide with the halving event—a fundamental occurrence signaling the start of a rally towards a new record high. With the halving event just four months away, the expert suggested that every pullback to the 1D MA50 (the 50-day moving average) presents a buying opportunity for investors employing Dollar Cost Averaging (DCA) strategies. Bitcoin consolidating below $45,000 Overall, despite Bitcoin showing signs of short-term consolidation, the cryptocurrency is in a better position than 18 months ago, supported by speculation around ETF approval. Notably, not all market participants believe the approval will trigger a significant price…
Filed under: News - @ December 31, 2023 10:18 am