Bitcoin remained within a tight trading range leading up to the weekly close on December 24, with a trader anticipating a potential breakout in the cryptocurrency’s price.
Data from Cointelegraph Markets Pro and TradingView revealed that BTC/USD exhibited predominantly sideways movement throughout the weekend, a trend that had started towards the end of the Wall Street trading week.
This price stability came as Bitcoin reacted to the final United States macroeconomic data of the year, resisting volatility.
Bitcoin’s value hovered around $43,500, prompting a well-known trader and analyst named Credible Crypto to express optimism about an impending upward movement.
According to Credible Crypto, the current flat trading phase signifies an accumulation period, making it an ideal time for investors.
He noted, “It really does not get much better than this,” and emphasized the possibility of a push towards $50,000.
Credible Crypto also highlighted several factors contributing to this bullish sentiment, including the tight accumulation range, decreasing aggregate open interest (which is considered healthy), active buying on Coinbase, and nearly reset funding rates.
All of these factors suggested that Bitcoin was well-positioned for its next upward move.
However, order book data for the BTC/USDT pair on the leading global exchange, Binance, indicated a key resistance level at just below $45,000, with approximately $92 million in ask liquidity.
This resistance level would need to be overcome for Bitcoin to make significant gains.
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On the other hand, Keith Alan, co-founder of Material Indicators, offered a contrasting perspective.
He suggested that holiday trading activity might not provide enough momentum for bulls to break through the resistance.
Alan pointed out that liquidity might shift, potentially making it easier for Bitcoin to move higher.
As the year-end approached, Bitcoin’s performance in December appeared fairly average, with month-to-date gains of approximately 16% as of December 23.
However, the quarterly performance was exceptional, at 62%, marking Bitcoin’s best quarterly performance since 2020.
Market analysts and experts continued to focus on Bitcoin’s price leading up to a significant event – the expected approval of the first U.S. Bitcoin spot price exchange-traded fund (ETF), scheduled for January 10, 2024.
Some speculate that this event could trigger a significant market reversal, potentially impacting Bitcoin’s price trajectory.
In the meantime, traders and investors remained watchful for any signs of movement in the cryptocurrency markets.
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