Bitcoin Surpasses 47K 96 Days To 2024 Halving

Bitcoin Surpasses 47K 96 Days To 2024 Halving

2024-01-15 • Actualizada

Bitcoin halving occurs approximately every four years, reducing the rate at which new Bitcoin is created by half. The last three halvings happened in 2012, 2016, and 2020. The upcoming one is expected in April 2024. This mechanism is designed to control the supply of new Bitcoin, contributing to its scarcity and controlled issuance. It helps in managing inflation, ensuring a stable and valuable long-term asset. The economic impact of halving affects miners, and market competition, and has historically been associated with price increases due to decreased supply and rising demand. Despite potential positive impacts, it also leads to increased volatility in the Bitcoin market.

In other news, the U.S. Securities and Exchange Commission (SEC) has approved 11 bitcoin exchange-traded funds (ETFs), marking a significant milestone for both bitcoin and the broader crypto industry. This decision comes after a tweet from the SEC's account led to confusion and a spike in Bitcoin's price. The approved ETFs provide a more accessible way for investors to gain exposure to Bitcoin without directly owning the cryptocurrency. Large fund managers like BlackRock, Fidelity Investments, and Invesco will manage these funds, and trading is expected to commence soon. The SEC, while approving the ETFs, expressed continued skepticism about cryptocurrencies, emphasizing the associated risks. This development is considered a major win for the crypto industry, with expectations of increased demand for bitcoin and potential price spikes. Despite the positive news, some SEC commissioners have raised concerns about potential market flooding and risks associated with crypto ETFs. The approval is anticipated to bring Bitcoin further into the financial mainstream.

BTCUSD - Weekly Timeframe

BTCUSDWeekly-1201.png

The weekly timeframe of BTCUSD chart shows a clear breakout of a previous supply zone, followed by a sharp rejection, which I consider to be a retest before the major move begins. Aside from the breakout, it is clear that the moving averages are also starting to switch over to a bullish array, which would be another confluence towards the bullish sentiment.

Analyst’s Expectations: 

Direction: Bullish

Target: $51,000

Invalidation: $43,000

ETHUSD - Weekly Timeframe

 ETHUSDWeekly-1201.png

ETHUSD is currently being faced with a weak resistance area; one I’m particularly hoping price gets to break. A break above this resistance level would create a valid support that should push prices towards the $4,000 mark. The moving averages in this scenario also seem to be prepping for a clear bullish alignment, which would confirm my bullish sentiment.

Analyst’s Expectations: 

Direction: Bullish

Target: $3470

Invalidation: $2765

XRPUSD - Weekly Timeframe

 XRPUSDWeekly-1201.png

Ripple (XRPUSD) has had a few shaky weeks, as far as the price action goes, but the recent push from the trendline support seems to have set the stage nicely for a proper bullish trend. With the recent adoption of Bitcoin ETFs in the United States, chances are that we get to see its impact in other cryptocurrencies as well.

Analyst’s Expectations: 

Direction: Bullish

Target: 0.66410

Invalidation: 0.56298

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

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