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March 3, 2024
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Bitcoin

Will Bitcoin ($BTC) Price Surpass $55000 Next Week?


Over the past five weeks, the Bitcoin price has been highly volatile indicating the market participants are waiting for the approval of spot Bitcoin ETFs. Despite making notable swings in the daily chart, the price movement is confined within a channel pattern projecting a shallow recovery. Here’s how this pattern could foretell the near-term future for this asset.

Will the Bitcoin Price Surpass $50000 in January?

  • The BTC price may remain sideways until the channel pattern is intact.
  • A bullish breakout from the upper trendline will intensify the buying momentum.
  • The intraday trading volume in Bitcoin is $17.4 Billion, indicating a 15% loss.
Bitcoin Price| TradingView Chart

The recovery trend in leading cryptocurrency Bitcoin started losing momentum in December 2023 which tilted its trajectory nearly sideways below $45000. This consolidation could be attributed to the uncertainty around the approval of spot Bitcoin ETFs.

A look at the daily time frame chart shows the consolidation has developed into a channel pattern consisting of two parallel walking trendlines. The coin price rebounded several times from this dynamic resistance and support indicates the traders have taken strict note of this structure.

By the press time, the Bitcoin price traded at $44333 with an intraday gain of 0.4%. Moreover, the U.S. Securities and Exchange Commission (SEC) is showing signs of progressing towards approving the first U.S. spot Bitcoin ETFs, evidenced by the submission of amended 19b-4 filings from multiple exchanges.

Thus, the BTC price is more likely to break the overhead trendline which would signal the upcoming direction rally. The post-breakout rally may push prices to $52100, followed by $60000.

Alternatively, a breakdown below the lower trendline would signal a new correction phase.

Long-Term Vision: Over 30% of Bitcoin Remains Unmoved in 5 Years

According to recent insights from IntoTheBlock, over 30% of Bitcoin’s total supply hasn’t been moved in more than five years, highlighting a significant trend in the cryptocurrency market: long-term holding, or ‘HODLing’. This chain statistic suggests that a substantial number of Bitcoin investors are not just short-term traders, but long-term believers in the asset’s value. They’re choosing to hold onto their Bitcoin through various market ups and downs, indicating a strong conviction in its future potential.

  • Bollinger band: A narrow range of Bollinger band indicators accentuates uncertain market sentiment.
  • Relative Strength Index: A bearish divergence in the daily RSI slope evidenced by lower low formation reflects a weakening of bullish momentum.

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