Aaryamann Shrivastava
FXStreet
- Bitcoin price trading around $34,700 has marked the highest weekly close in 78 weeks.
- Analyst on X, formerly Twitter, have cautioned investors against following the tempting trend as they have likely missed the breakout.
- Upon analyzing past instances, the next major buy window is expected in mid-December, when BTC would be around $28,000.
Bitcoin price heading towards $35,000 has induced optimism in investors after the recent rally resulted in significant profits for them.
Naturally, the next move by the majority of people would be to jump on the bandwagon, but some analysts are advising to pull back and wait until December.
Daily Digest Market Movers: Bitcoin price weekly close hits 18-month high
Bitcoin marked a 35% increase in value in the past six weeks to trade at $34,747 at the time of writing. This is a significant development for the cryptocurrency as the rally led to mark the highest weekly close since April 2022, which amounts to 78 weeks to date.
However, in doing so, BTC seemingly initiated a pattern that has been observed time and again since the beginning of 2023.
The Relative Strength Index (RSI), which measures the speed and change of price movements, is presently in the overbought zone above the 70.0 mark. Historically, this has been followed by a period of sideways movement or downtrend, which lasts for about 55 days. Post these 55 days, the RSI falls back down to 30.0 or lower, reaching into the oversold zone.
BTC/USD 1-day chart
This is when the possibility of making the most gains is at its highest, as stated by analysts Ali on X, Twitter, who stated,
"Bitcoin rally might be tempting, but if you missed the breakout, caution's warranted! Rather than chasing the $BTC trend, consider awaiting a dip — look for the RSI on the daily chart to fall below 30 for a better entry point.
Thus, considering the 55-day pattern to stand true this time around also sets the potential date of the next buy signal at around December 19. This is likely when the RSI is below 30.0, suggesting an ideal moment to accumulate BTC, which would probably be around $28,000, considering the drawdowns in the past in accordance with this pattern.
Technical Analysis: The micro outlook for Bitcoin
Since testing the $33,901 level as a support floor, Bitcoin price is looking to continue its rally supported by the bullishness surrounding spot BTC ETFs. While the next bout of major ETF news might take a while, in the upcoming week, Bitcoin will witness the US Federal Reserve's decision on interest rates as well as the release of Nonfarm Payrolls data.
If the outcome of both events is per expectations, BTC might not observe much volatility and continue hanging around $34,700 and potentially even rise to tag $35,000.
BTC/USD 1-day chart
On the flip side, short-term supports for Bitcoin price could be found at the $33,901 level, followed by the $31,507 area.
Crypto ETF FAQs
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Is Bitcoin futures ETF approved?
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Is Bitcoin spot ETF approved?
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.