Spot Bitcoin ETF’s approval anticipation has led to increased excitement, with Bitcoin’s (BTC) price beginning to exhibit high volatility. This increase in volatility coincides with various large whale transactions consisting of hundreds of BTC, which could be a potential indicator of a downturn.
Bitcoin May Enter Consolidation Mode
If the U.S. Securities and Exchange Commission (SEC) gives the green light for a spot Bitcoin ETF, there is a strong belief that BTC’s price momentum will increase in the upcoming quarter. Furthermore, the SEC is expected to make the approval announcement between January 8-10, 2024.
Crypto analyst Dan McDermitt predicts that BTC’s price will retest the $40,000 support level as it enters 2024 and will consolidate below the $44,000 resistance level for a period of the new year.
As seen during major macroeconomic announcements such as the Federal Reserve’s (Fed) interest rate announcements, the largest cryptocurrency may trade closer to the $40,000 support range between January 6-10. The analyst also added that Bitcoin’s price formation suggests consolidation, which could mean a recovery for altcoins, allowing them to rise and stand out in this scenario.
Indeed, in the last few days, Chainlink‘s (LINK) and Litecoin’s (LTC) prices have shown signs of volatility, which could be early indicators of an altcoin rally. Therefore, investors and traders may adopt a more cautious approach until January 10, 2024.
High Expectations Following Spot Bitcoin ETF Approval
The approval of the spot Bitcoin application in January 2024 corresponds to a positive outlook for traders and investors, with the start of institutional money flow and the planned Bitcoin block reward halving in the second half of 2024. This suggests that BTC’s price could have a long bullish momentum in the context of two historically significant events in the cryptocurrency market.
The British multinational banking institution Standard Chartered predicts that Bitcoin could reach $100,000 by the end of 2024, while Cathie Wood, CEO of investment firm Ark Invest, expects the largest cryptocurrency to hit $1 million by 2030.
