Bitcoin price has surged by at least 155% this year alone from roughly $16,375 to highs at $41,670 on December 12.
The bullish outlook in the market has continued to attract investors both crypto and tradition, bolstered by the growing optimism for a rally to a new all-time high, possibly above $100,000 in the bull run likely to peak in 2024 and 2025.
However, the situation in the market at the moment is slightly dull after futures traders in the crypto market lost more than $500 million in liquidations due to highly leveraged positions amid heightened volatility.
Some altcoin majors lost in double-digits on Monday as Bitcoin extended the correction from highs close to $45,000. Ethereum is trading trading at $2,215 after pulling back from $2,400 last week.
According to Muneed Ali, the co-founder of Trust Machines, a BTC development company, “Momentum has been consistently building in the Bitcoin builders space all year, and we are now seeing the markets reflect the excitement around the increased activity.”
ALi told CoinDesk that pivoting the Bitcoin network to support Ordinals has filed excitement among investors, who see Bitcoin not as a single-purpose protocol but as a building platform able to support a growing ecosystem of use cases.
Recommended for you: Top Reasons Why You Should Buy Bitcoin (BTC), Shiba Inu (SHIB) In December
Bitcoin Price Prediction Ahead of 2024 Spot ETF Approval
Bitcoin has soared to new highs in 2023 as investors speculate on the approval of the ETF. All eyes are currently on the Securities and Exchange Commission (SEC), especially with the window anticipated between January 5 and 8, 2024.
“I expect the interest in Bitcoin to increase a lot in 2024 with potential ETF approvals, the halving event, and the influx of new developers,” Ali said.
The approval of the ETF will stand out as an early catalyst in 2024 ahead of the pre-halving rally. Bitcoin price tends to post a pre-halving rally amid growing optimism among investors This would mimic the upswing the market has experienced between October and December.
Following the halving in April, an event that slashed miner rewards in half, Bitcoin could post a post-halving rally several months after the actual event. With miner rewards significantly reduced, BTC supply will begin to shrink as demand increases. Crypto investor and analyst, Rekt Capital recently shared on X what he described as “5 phases of the Bitcoin halving.”
#BTC
5 Phases of The Bitcoin Halving
1. Pre-Halving period
Approximately 4.5 months remain until the Bitcoin Halving in April 2024
Historically, any deeper retraces that occur during this period tend to generate fantastic Return On Investment for investors in the several… pic.twitter.com/FxkOyEtXJT
— Rekt Capital (@rektcapital) December 6, 2023
This week’s technical outlook is mainly bearish and Bitcoin price needs to successfully retest the 21-day Exponential Moving Average (EMA) (in blue) to affirm the bulls’ position in the market while reducing the bearish impact.
The green line will also contribute to steadying BTC to prevent declines from extending deeper below $40,000.
Bitcoin price prediction chart | Tradingview
A sell signal from the Moving Average Convergence Divergence (MACD) indicator paints a grim picture, which could further worsen the technical structure.
The next move above $42,000 could call on more traders to consider longing Bitcoin. It would be an early assurance that the correction is over and that the pre-Christmas rally is upon us.
Key milestones in the next few weeks would be the breakout above $45,000 and subsequently beyond $50,000. The ETF approval likely in January could trigger a larger breakout towards $60,000 while the pre-halving rally may send Bitcoin price to a new all-time high.
Following the halving in April next year, Bitcoin may retrace before starting to climb again. This time, the target would be above $100,000.
Related Articles
- Breaking: KuCoin Ends New York Operations, Settles with NYAG for $22M
- Terra Luna Classic Votes On 800 Million Burn For Another LUNC And USTC Rally
- Injective Price Prediction: What’s Next for $INJ After 67% Weekly Surge?
