Bitcoin (BTC) has consolidated for a significant part of the year and has been trading above the $40,000 threshold for some time. The upward trend in the crypto king has primarily been fueled by the anticipation surrounding the potential approval of a spot Bitcoin ETF in the US. The momentum of Bitcoin’s price increase in the new year is expected to be fueled in many ways. Factors such as increased institutional adoption, block reward halving, regulatory changes, and broader macroeconomic trends will be very important in shaping the trajectory of Bitcoin’s price. Currently, there is curiosity about how Bitcoin will trend in the coming days and whether it will maintain its upward momentum. Accordingly, we analyzed the Rainbow Chart provided by BlockchainCenter for you to get an idea about Bitcoin’s potential trajectory.
Bitcoin Price Prediction for January 1, 2024
With 2024 just days away, discussions have started about what level Bitcoin’s price will be. Although the high volatility nature of cryptocurrencies makes it difficult to make a clear prediction, the Rainbow Chart provides important clues. The chart uses a logarithmic growth curve to provide a projection for the price, giving an idea about the potential future price direction of BTC. The Rainbow Chart places rainbow color bands over the curve to highlight market sentiment at each stage of the crypto king’s price, indicating bullish or bearish scenarios.
According to historical models, 2024 will be a serious rise year for Bitcoin. This suggests that Bitcoin could repeat what it did in 2020-2021. According to the Rainbow Chart, Bitcoin shot up from the “Accumulation” zone to the “Sell” zone in September 2020, then rose to the “Seriously, SELL!” zone (red), and after a short correction in April 2021, it reached its all-time high by returning to the “Seriously, SELL!” zone.
Bitcoin Appears Set to Exceed $45,000
Currently, the momentum Bitcoin has captured seems insufficient to surpass the critical $45,000 level, which is seen as important for reaching $50,000. However, the expectation that a spot ETF will be approved in January, the upcoming block reward halving, and potential interest rate cuts by the US Federal Reserve (Fed) are catalysts that will increasingly feed the market and the crypto king day by day. This means that optimism in the market will grow day by day, and the rise could gain strength. Based on this, many analysts are sharing their upward and high-expectation predictions for Bitcoin’s performance in the coming year.
Many market participants, especially considering the potential of the spot ETF to attract institutional investors, are expecting it to act as the most important catalyst for a major rally, but not all market participants are yet convinced of such a rally. Some market participants expect the ETF approval to turn into a “buy the rumor, sell the news” event, with the price initially falling instead of rising.
