Bitcoin (BTC) is hovering near the $44,700 overhead resistance, indicating a mild resistance from the bears. However, the downside looks protected as traders expect one or more spot Bitcoin exchange-traded funds (ETFs) to be approved by the regulator in January. The event is expected to provide a massive boost to the crypto space.
The spot Bitcoin ETF approval, if it comes, will cause an initial knee-jerk reaction, but after that, traders are likely to shift their focus to the actual demand for the ETFs. Trading firm QCP Capital said in its market update that the “demand for the BTC Spot ETF at the start will fall short of market expectations.” That could tempt traders to book profits, starting a retretracement.
It is always difficult to predict the short-term market reaction to pivotal events, but there is a tendency for speculators to book profits. Sometimes, the profit booking happens just after the event, and on other occasions, after a spike. But after the initial pullback, the prevailing trend generally resumes.
Will Bitcoin and altcoins break above their recent local highs and extend their uptrend, or will profit-booking pull prices lower? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin has reached the overhead resistance at $44,700, where the bears are posing a tough challenge. A minor advantage in favor of the bulls is that they have not ceded much ground to the bears.
Although the upsloping moving averages indicate advantage to buyers, the negative divergence
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Author: Rakesh Upadhyay
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