Bitcoin has recovered well after yesterday’s broader crypto market crash, currently trading around $44,500. According to crypto analyst Ali, if certain technical formations hold, Bitcoin could continue to rise to $48,000 in the near-term.
In a tweet today, Ali pointed out that since September, Bitcoin’s price action has largely moved within an ascending parallel channel, bouncing between support around $34,000 and facing resistance around $48,000:
“From this perspective, the governing pattern behind #Bitcoin price action since September 2023 appears to be an ascending parallel channel. If this technical formation holds true, $BTC could advance toward the channel’s upper boundary around $48,000, face rejection, and retrace to the lower boundary at $34,000, and then rebound back to the upper boundary at $57,000.”
If this channel formation remains intact, it presents a constructive technical backdrop for Bitcoin in the coming weeks and months.
In a following tweet, Ali also highlighted why the $41,800 level is an important near-term support to monitor. A cluster of over 2.4 million Bitcoin addresses holding at least 1 BTC apiece have cost bases around $41,800, making it a substantial support zone. As long as Bitcoin holds above this level, the overall outlook remains bullish according to Ali.
Additionally, he notes that the resistance levels ahead of Bitcoin’s current price appear relatively small, further strengthening the potential for stable or moderately rising prices in the near-term.
Traders Eye Potential ETF Approvals
The possibility of a Bitcoin ETF approval in the US has put further wind in the sails of crypto bulls. According to Eric Balchunas, a senior ETF analyst at Bloomberg, we may be closer than ever before to the SEC granting approval for spot Bitcoin ETFs trading in US markets.
Balchunas stated that the SEC is currently providing final commentary to ETF issuers who have active Bitcoin ETF applications submitted.
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Show more +There are numerous high-profile investment managers and crypto companies vying to have the first approved Bitcoin ETF in the US, including Fidelity, BlackRock and Grayscale. While it remains unclear which particular ETF would get through the approval process first, multiple applicants beginning the final stages of their filings signals we are nearing the finish line.
The swelling anticipation and speculation around SEC decisions on spot Bitcoin ETFs adds further momentum and positive sentiment pushing crypto prices higher in the interim. If and when any actual approvals land, it could provide the next major catalyst to propel Bitcoin and the broader crypto market to new highs.
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