Greetings and welcome to this monthly-based Bitcoin technical analysis.
Disclaimer: The information presented in this analysis is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are highly speculative and come with substantial risks.
In our first glance at the monthly chart, one thing becomes evident: Bitcoin's price action, in alignment with its whitepaper and its fundamental role as a "safe haven," is fulfilling its intended purpose.
Despite the challenges in the financial world, such as the FTX bankruptcy, struggling banks, the Sam Bankman-Fried trial, impending rate hikes, inflation, geopolitical tensions, and the constant barrage of fake news surrounding the Bitcoin Spot ETF, Bitcoin continues its upward trajectory.
The recent Bitcoin ETF speculation has shed light on a critical aspect that many may have missed or misunderstood. The approval of the ETF is not necessarily "priced in," as some experts often claim. This implies that when the Spot ETF(s) gain regulatory approval, the price could experience a more substantial surge than anticipated.
2023: Bitcoin's Soaring Ascent
As we entered 2023, Bitcoin's price began its ascent, surpassing the ominous $15,000 mark. By February, it tested a significant resistance level at $24,900, forming a notable doji pattern. The first three months of the year saw sky-high trading volume. In March, Bitcoin breached more resistance levels, pushing past $27,500.
However, the subsequent months witnessed a significant drop in trading volume, even as the price approached the $31,000 mark. The next five months were characterized by a range-bound trading pattern, with Bitcoin fluctuating between $24,500 and $31,000.
With the arrival of "Uptober," or October as many refer to it, Bitcoin's price surged once again, marking the second leg of its rally. This upward momentum will be fully confirmed only if the price successfully breaches the $40,000 threshold.
Now, the price is inside a very strong resistance/support level. It could be a consolidation phase for a month or so, to see a continuation of the uptrend before the year ends.
Insiders knowledgeable about the SEC predict that the approval of the Spot Bitcoin ETF is likely to occur by January 10, 2024. Given the market's reaction to the recent fake news, it's plausible to assume that the $40,000 level might be conservative, and Bitcoin is poised to soar beyond $50,000.
Outro:
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Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Cryptocurrency investments are speculative and involve risks.
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