Bitcoin Remains Positive Despite Early-Week Dip, Potential Game-Changing Catalysts Anticipated in 2024
Summary:
Bitcoin, amidst an underwhelming start to the week and a drop near $40,500, still remains trend-positive with experts predicting a series of bullish catalysts in 2024. These include Bitcoin exchange-traded funds approval and anticipated interest rate cuts by the US Federal Reserve. S&P 500 and the U.S. Dollar Index show signs of recovery, while other cryptocurrencies like Ether, BNB, XRP, Solana, and Avalanche witness varying degrees of fluctuations. The trends underline the importance of thorough research and risk assessment in the realm of investments and trades.
Despite a promising close last week with a profit of 9.55%, Bitcoin (BTC) began the current week on a downswing, dropping near $40,500. The significant drop in Bitcoin concurrently instigated liquidations across a variety of altcoins. Data from CoinGlass revealed that the overall cryptocurrency long liquidations for December 11 surpassed $300 million. Despite the notable drop, Bitcoin and altcoins are still trend-positive as fluctuations are inherent in any upward tendency. Vertical rallies are commonly associated with steep pullbacks, facilitating the ejection of weaker stakeholders and offering longer-term investors the chance to acquire more at reduced prices. The extended market dips are anticipated to be curtailed due to a number of prospective bullish catalysts in 2024. Expert predictions for 2024 indicate that at least one Bitcoin exchange-traded fund will receive regulatory approval in January, which could present a monumental shift. The anticipated Bitcoin halving in April and expected interest rate cuts by the US Federal Reserve could also positively bolster risk-heavy assets with Goldman Sachs predicting the Fed to initiate rate cuts in the third quarter of 2024.
Despite the recent downturn, the S&P 500 Index successfully remained above the break-even level of 4,541. This implies buyers' efforts to convert the figure to support. With an upsloping 20-day exponential moving average (4,531) and the relative strength index (RSI) nearing the overbought zone, the path of least resistance heads upward. If buyers overtake the overhead resistance at 4,650, the index may gain momentum and rise to 4,800. However, if prices wane and considerably drop below the 20-day EMA, it marks aggressive selling at superior levels and could lead to a tumble towards the 50-day SMA (4,393).
The U.S. Dollar Index (DXY) recovered from the 61.8% Fibonacci retracement level of 102.55 on November 29, denoting purchases at lower rates. The relief rally hit the 20-day EMA (104), where the bears are putting up a substantial fight. However, the bulls maintain control, keeping the price from significantly dipping below the 20-day EMA. If the index surpasses the minor resistance at 104.50, it may escalate to the 50-day SMA (105).
In contrast, Bitcoin's close consolidation near $44,700 took a downturn on December 11. The prospect of an up-move attracted traders, leading to active selling. Yet, a rebound off the 20-day EMA ($40,708), as suggested by the long tail on the candlestick, indicates that buyers will attempt to push the BTC/USDT pair above $44,700 again. If the price dips below the 20-day EMA, the correction could fall deeper to the break-even level of $37,980.
Ether (ETH) had a downturn from $2,403 on December 9 and dropped below the break-even level of $2,200 on December 11. This infers a rush to exit by the bulls. The past few days' price action generated a negative RSI divergence, suggesting a weakening of bullish momentum. However, the bulls are vigorously defending the 20-day EMA ($2,186).
BNB (BNB) displayed an outside-day candlestick pattern on December 11, depicting a fierce competition between bulls and bears. The lengthened tail on the candlestick suggests channelling buying at lower rates. If the price remains above $239.2, the BNB/USDT set is expected to gather momentum and zoom to $265. But, should the bears sink and maintain the price below $223, the set may slouch towards the essential support at $203.
XRP (XRP) surpassed the $0.67 resistance on December 8, but the breakthrough was not capitalised upon by the bulls leading to selling at higher rates. The bears defended yet another attempt to drive the price above $0.67 on December 10, which triggered a steep pullback dipping below the 50-day SMA ($0.62) on December 11.
Solana (SOL) is facing sellers at the upper limit of $78. The inability to scale this limit may have initiated the pullback that occurred on December 11. Despite this, another attempt was made to overcome the $78 barrier. If this barrier is breached and the price holds, it could pave the way for a possible surge to a significant $100 mark.
Finally, Avalanche (AVAX) has been performing strongly in recent days. The price pulled back on December 11, indicating that short-term traders may be booking profits. However, if buyers can keep the price above $31, there is a possibility of an upward rally above $38. If the price plunges below $31, a deeper correction to the 20-day EMA ($25.85) may be on the horizon.
It should be noted that all investment and trading moves come with risks, and potential investors or traders should conduct their own research and due diligence before making a decision.
Published At
12/11/2023 10:00:00 PM
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