In the past few days
BTCUSD
was able to breakout of the ascending triangle AND had enough momentum to even breakout of the ascending channel. During the rally BTC was able to reach as high as 45K.
If we look at the weekly chart we can see that the 45-48K area has been a level of resistance and support so it is likely that this level won't be broken as easily. Either BTC isn't done rallying and we will see further upside towards 48K but we could also see more consolidation the next few weeks, with BTC price ranging between 38-40K and 45K.
The next few days will give us more insight on which scenario is more likely.
In short we can conclude that the BTC ETF hype is still driving this bullish behaviour so I am not expecting much downside unless it becomes clear that the SEC will not approve the current ETF applications in January.
If the ETF does get an approval we will probably see another leg up, passing 45K and continuing it's rally towards the all-time high of 65K.
On a side note it's worth noting that the BTC ETF approval scenario is mostly priced in so an unexpected refusal would have a more drastic effect on the price.
BTCUSD
was able to breakout of the ascending triangle AND had enough momentum to even breakout of the ascending channel. During the rally BTC was able to reach as high as 45K. If we look at the weekly chart we can see that the 45-48K area has been a level of resistance and support so it is likely that this level won't be broken as easily. Either BTC isn't done rallying and we will see further upside towards 48K but we could also see more consolidation the next few weeks, with BTC price ranging between 38-40K and 45K.
The next few days will give us more insight on which scenario is more likely.
In short we can conclude that the BTC ETF hype is still driving this bullish behaviour so I am not expecting much downside unless it becomes clear that the SEC will not approve the current ETF applications in January.
If the ETF does get an approval we will probably see another leg up, passing 45K and continuing it's rally towards the all-time high of 65K.
On a side note it's worth noting that the BTC ETF approval scenario is mostly priced in so an unexpected refusal would have a more drastic effect on the price.
If BTC is able to breakout above 45K we can see a new run towards 48K.
If BTC is unable to breakout above 45K i am expecting a retest of the channel upper trendline around 40K.