Bitcoin price continues to reward patient investors, especially those who dared to buy the dip below $39,000. The largest crypto explored lower levels to $38,517 but gained ground, recovering by 12.15% to trade at $43,200 during US business hours on Tuesday.
The semblance of stability is also spreading across the market, with top altcoins like Solana (SOL), Ethereum (SOL), and Cardano (ADA), exhibiting modest gains of 7.6%, 2.4%, and 6%, respectively.
The next few days could be make-or-break for Bitcoin. The big question: will the recent uptrend toward $50,000 continue, or will things settle into a holding pattern? Lurking in the shadows is the ever-present threat of another price drop back to $40,000.
What’s Next For Bitcoin Price This Week?
The commendable upswing from lows below $39,000 came to a sudden halt under $44,000. On the bright side, Bitcoin appears to be holding firmly to short-term support at $43,000.
A break below this support could create uncertainty in the uptrend. Persistent signs of weakness would compel investors to sell intending to buy later at a lower price point.
However, before casting doom on the largest cryptocurrency, it would be wise to consider the likelihood of BTC consolidating between $42,000 and $44,000.
Bitcoin price chart | Tradingview
The purple band backed by the presence of all three key applied moving averages; the 50 Exponential Moving Average (EMA) (in red), the 200 EMA (purple) and the 20 EMA (blue) could put a stop to potential losses to $40,000.
The Relative Strength Index (RSI) although at 70 is showing signs of retreating into the neutral area implying that sellers are starting to catch up and make moves against Bitcoin.
On the higher timeframes like the weekly chart, Bitcoin is fighting to invalidate a bearish divergence. Intriguingly, “the RSI is already pressing beyond its downtrend (red),” analysts at Rekt Capital said via X.
#BTC
Trying hard to invalidate its Weekly Bearish Divergence (which arguably already played out on last week’s dip)
The RSI is already pressing beyond its downtrend (red)$BTC #Crypto #Bitcoin https://t.co/da6foTzPwg pic.twitter.com/3fykEes2gA
— Rekt Capital (@rektcapital) January 30, 2024
Are Investors Preparing For Bitcoin Pre-Halving Rally?
Bitcoin’s next halving event, which will slash miner rewards again by half is expected in less than three months. For investors, this is a crucial moment since BTC price has historically proven the ability to launch a bull run in the wake of the halving.
At the same time, a pre-halving rally that rides on the hype around the event often triggers a staggering move in Bitcoin price. Renowned crypto investor Michaël van de Poppe predicts that BTC could top $50,000 before halving occurs.
#Bitcoin took the liquidity above the high and will likely consolidate.
Overall, pre-halving a new test at $48-50K seems likely, and altcoins will outperform massively during this time. pic.twitter.com/fJ7QUZKRSA
— Michaël van de Poppe (@CryptoMichNL) January 30, 2024
In other news, Bitcoin spot exchange-traded funds (ETFs) have continued to gain momentum since their debut in the US earlier this month. The latest market data reveals that the products cumulatively achieved more than $255 million in weekly net inflow.
Recommended: 5 Reasons Why Solana (SOL) Price Skyrocketing Daily
Grayscale, which saw the highest outflows following the launch of its GBTC ETF from the Bitcoin Trust product recorded its “5th consecutive day” lower outflows as well as the least outflow from day 1.
Yesterday’s #Bitcoin spot ETF data was very positive!
– Highest net inflow in over a week (+$255m.)
– Grayscale outflows were down for the 5th consecutive day, and the lowest outflow since day 1.The worst of the selling pressure does appear to be over.
Also, we learned that… pic.twitter.com/Ee3FXLe7Kr
— ChiefraT (@ChiefraFba) January 30, 2024
According to ChiefraT, a trader on X, “the worst of the selling pressure does appear to be over” with 3% of Bitcoin’s supply already in the ETFs. Both the halving and the uptake of spot ETFs could support the biggest bull run in the history of BTC.
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