Bitcoin’s Glorious 2024 Wraps Up. Above or Below $100K?
BTC/USD Trapped Between Support and Resistance. End of Year False Breaks?
As we’re approaching what was undoubtedly the best year to date for crypto in general, Bitcoin is hovering around $95K after surpassing $108K earlier this month. The year’s lowest point was reached back in January when Bitcoin was worth $38,500.
The main catalyst behind the climb was the approval of spot Bitcoin Exchange Traded funds (ETFs) that occurred in January 2024. This marked in a way Bitcoin’s acceptance by the financial giants and we could even say that with the ETFs’ approval, Bitcoin went from a “gimmick” (as it was still considered by many) to a true investment opportunity and a legit financial asset.
The ETFs performed extremely well throughout the year, but from December 19 until December 25, they registered combined outflows of $1.5 billion. This coincided with a drop in Bitcoin’s price from the ATH to a low of $92,000. However, the day after Christmas, inflows began pouring in, totaling more than $475 million, according to data from CoinGlass.
There are only three trading days for ETFs this year: December 27, 30, and 31. Unlike cryptocurrencies, legacy assets (funds, stocks, currencies, etc.) do not trade over the weekend. We don’t know what these last 3 days have in store for us but thus far, spot Bitcoin ETFs have totaled almost $36 billion of net inflows, with almost $112 billion AUM (assets under management). Ethereum ETFs on the other hand, have been less appealing, with only $2.63 net inflows for the year and AUM of roughly $12 billion.
Chart Analysis – BTC/USD
Bitcoin is currently trading at $96,200 after rebounding from a low of $92,100. It looks like the bulls and bears are taking a break for the end of the year because there is no clear pressure from either side.
We have a double bottom at $92,100 ($92,300), which is created right on the 50-day Moving Average. In fact, Bitcoin has bounced several times off the 50 MA, which shows some bullish pressure. However, as we can see, the rally stopped right at the resistance at $99,800, which was a previous significant peak (it was an All-Time High at that time).
Basically, now Bitcoin is trapped between $99,800 (resistance) and the 50-day Moving Average (support). The main bias is clearly bullish but in the short term, we may see some back and forth without clear direction due to the end-of-year irregular volatility. A break of either one of the mentioned S/R levels may trigger a stronger move in the direction of the break but fake-outs are also a possibility.
