The leading cryptocurrency is enjoying a calm midweek holiday, and altcoins are happy as they have not suffered major losses. At the time of writing, we see many altcoins achieving double-digit gains. While BTC remains calm, volume is increasing and liquidity is turning to altcoins, which is promising for altcoin investors.
Will Bitcoin Increase?
BTC price is above $42,500, and this critical threshold is currently being maintained. The latest CoinShares report also reveals that institutional appetite continues to grow, with net inflows persisting. As you can see in the chart below, the resistance price in the $44,179 region has been preoccupying the price for a while. Throughout December, the price tried to surpass this region. When it succeeded, the rising resistance line coming from the June 21 peak prevented further gains.
The current rising trend line is at $42,257, which was last tested on December 18, after which the price rebounded to resistance. If a repeat occurs, we might see the frequently tested resistance level being targeted to break this time.
Will Bitcoin Rise in January?
With the first week of January coming to an end, a breakout is expected for the now tightening BTC price. Assuming demand remains lively, with the earliest date for ETF approval being January 8, we might see an attempt at $47,600.
Conversely, the main support at $40,631 could be tested. Closures below $40,325 could bring to mind the possibility of BTC price retreating to as low as $35,200. In a few weeks, a “sell the news” event could also target this level.
We mentioned that the rising support trend line, which has been tested several times since the beginning of 2023, was tested again today. If we are indeed at the start of a bull season, we should not see long-term closures below this trend. Accordingly, prices above $52,000 should normalize for BTC in February.
Of course, all these predictions do not have to come true, and technical analysis does not definitively predict the future. However, short and medium-term price performance, along with January’s news flow, is moving investors away from pessimism.
