As the year draws to a close, investors who have been counting the days will soon start counting down the hours. Moreover, the year 2024 is filled with hope just like 2023. There’s no Binance FUD, ETF approvals are anticipated, the halving is around the corner, and interest rate cuts are not far off. Moreover, the recently released PCE data indicated that the decline is continuing. Everything seems to be on track.
Cryptocurrencies on the Rise
Bitcoin‘s price was over $43,700 at the time of writing, and optimism for the end of the year is growing as the PCE data came in below expectations. Despite intermittent corrections since October, the cumulative value of cryptocurrencies has steadily increased. The upward movement reached a peak of $1.63 trillion on December 9th.
After a bearish divergence in the RSI, buyers returned to the game on December 18th and turned the market direction upwards again. Now, the cumulative value of cryptocurrencies is seeking new highs above $1.65 trillion.
If the upward movement continues, the total value of all cryptocurrencies could roughly increase by 20% to reach the $2 trillion mark at the $1.9 trillion level. This scenario would lead to double-digit increases for altcoins in general. It could also help double the price of cryptos that are positively diverging.
If the cumulative value breaks below the trend line, a pullback to $1.38 trillion could be observed. Experts who believe in the ‘buy the rumor, sell the news‘ event with ETF approval expect such a short-term reversal.
Bitcoin Price Target
Monthly PCE is negative and inflation is now at negative levels, which means the Fed could start cutting rates sooner rather than continuing to tighten. The macro front is supporting risk markets. BTC is lingering around the $43,700 region as this article is being prepared.
Like the cumulative value of cryptocurrencies, the BTC chart has also seen a rise along the trend line since October. The upward movement resulted in a peak of $44,729 on December 8th. After the initial decline, the BTC price bounced on the support trend line on December 11th and continues its positive movement within the rising parallel channel.
If BTC can break above the resistance line, it could run towards its second target of $48,800. In the opposite scenario, a drop to $37,800 could be expected.
