Bitcoin Price FOMO To $50,000 Intensifies With The SEC Set To Greenlight BTC ETF

Bitcoin price chart

Bitcoin price is lethargic ahead of the New Year as investors look forward to approval of spot Bitcoin exchange-traded funds (ETFs) in the US come January. The largest cryptocurrency had rallied to almost touching $45,000 in December but corrected to test support at $40,000.

Due to the indecision among bears and bulls, Bitcoin continued to wobble between resistance at $45,000 and support at $40,000. A break above the seller congestion could trigger a FOMO-driven rally above $50,000 bolstered by optimism around the approval of the ETF.

Bitcoin Price Prediction: Navigating The Incoming Breakout

Bitcoin is mainly in the bulls’ hands supported by an ascending trendline, forming a bullish triangle. With at least four bounces off this support line, BTC could easily resume the uptrend.

Moreover, the ongoing consolidation in the ascending triangle paints an enhanced bullish picture. However, traders must consider entering fresh long positions to defeat the immediate confluence resistance at $43,000 formed by the 50 Exponential Moving Average (EMA) (in red) and the 20 EMA (in blue).

The Relative Strength Index (RSI) marginally backs the bullish theory after recovering from near oversold conditions at 30 although it is facing some resistance at 50 at the time of writing.

Bitcoin price chart
Bitcoin price chart | Tradingview

The ascending trendline would be validated with Bitcoin price stepping above the horizontal ray (x-axis) resistance at $44,300. Traders can enter long positions above the confluence resistance at $43,000 but most importantly above $44,300 while targeting a 13% move to $50,050.

Recommended for you: SEC Reportedly Held Calls with Spot Bitcoin ETF Filers

An incoming buy signal from the Moving Average Convergence Divergence (MACD) indicator is another signal traders should consider in the short term. The MACD line in blue is about to cross above the signal line in red which would bolster the bullish outlook.

Bitcoin Holders Increase Risk Appetite

Bitcoin holders are still scooping up the coin as the price consolidates, according to blockchain data by IntoTheBlock. It appears that history is repeating itself because “long-term holders are still accumulating.”

Crypto analyst Rekt Capital told his followers on X that “the BTC bottoming out candle 3-year is coming to an end” based on the four-year cycles that are linked to Bitcoin halving.

Another analyst Crypto Thanos agreed with the sentiments that Bitcoin’s dip is now over and “we are ready to soar up again.”

He added that investors who bought BTC at $41,500 are already in profit. Therefore, it is prudent to say that with a break above resistance at $45,000, Bitcoin price could quickly surge above $50,000.

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Crypto Feed:
John Isige