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After the weekend and early week pullback, bitcoin has now turned back up again. A bullish rest of the week ahead?
There really does not appear to be anything that can detain bitcoin’s bullish momentum skywards. This is the one asset class that is truly outside of the failing traditional financial system, and despite the lukewarm mainstream media coverage, a growing number of people are starting to realise this.
An impending ETF
Of course, there is also a simply gargantuan magnet pulling bitcoin towards the heavens, and that is the impending approval of a Spot Bitcoin ETF. The likelihood is that this will take place in early January. Therefore, bitcoin still has room to run for at least another three weeks. And even then, it will remain to be seen whether the announcement will be a ‘sell the news’ event, or whether it will rocket-propel bitcoin to even higher levels.
Short term resistance
Source: Trading View
In the very short time frame of the hourly, bitcoin is flirting with resistance at $43,130. Getting above $44,700 is the next target, which would mean another high for the year, and a probable continuance of bitcoin’s meteoric rise over the course of 2023.
Bitcoin respects trend line
Source: Trading View
Zooming out a lot further on the medium term daily time frame, it can be observed that bitcoin is respecting the upward sloping trend line in force since mid-October. This may serve as an alarm indicator, on the assumption that if bitcoin breaks this line, it could spell the beginning of a deeper pullback.
As things stand, bitcoin is still arguably the number one pristine asset in the world, and if this is proved to be true, the bull market is really only just getting started.
However, all assets have their peaks and troughs. Nothing can continue to go up indefinitely, and bitcoin will certainly have a correction at some point, and this could even be as much as 40%. That being said, bitcoin is probably an asset for the much longer term. Those that buy and just hold have experienced huge gains over bitcoin’s lifetime. Invest wisely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.