- December 11, 2023
- Posted by: Jackson Bennett
- Category: Crypto, Cryptocurrencies, News
Bitcoin, which is the largest and most widely used cryptocurrency in the world, has been on an upward trajectory in the last few weeks and is hitting the yearly high consistency, which has resulted in more investors and traders coming to its side.
This article is focused on the current movements of bitcoin, including the various shifts of price in the week, the general outlook in the following week, as well as the current round-up news that impacts the bitcoin market.
Bitcoin Current Price Analysis
The Bitcoin price is $36,304. It currently stands at 65% in the last 24 hours. At this particular time, the price fluctuations of the first digital currency constrained the tokenโs market capitalization to $709,303,044,686.Until now, the fluctuation of Bitcoin in percentage happened to be 120 percent. 06%.
Bitcoin has been ranging within the $35,000 to $38,000 price range for the past few days after it broke out in a descending triangle on November 6, 2023.
Today, the closing price of Bitcoin is within 5% of the 50-day moving average, which is widely regarded as a dynamic support level. The second, 20-day moving average is also increasing, and there is a strong probability for it to cross above the 50-day moving average, though in an upward fashion. The relative strength index (RSI) is at 60, which points towards positive momentum but is on an upward trajectory.
There are some indications that the bulls should be cautious, and, perhaps, pessimistic. Since the breakout has already happened and prices have established new higher levels, trading volume has decreased, which is not favourable for buying pressure.ย
On the same chart, we now also get a bearish divergence signal from the MACD histogram, which created lower highs while the price made higher highs. This suggests that the stock is likely to reverse or correct in the coming weeks or, at the very least, within the next few months.
Read more :-ย Bitcoin (BTC) Price Eyes $70,000 As US Feds Leaves Rate Unchanged
Weekly Price Analysis
When looking at the weekly chart, we had a clear movement up through the $28,000 zone at the beginning of October 2023. The weekly candlesticks have been mostly green with large real bodies and long upper wicks suggesting the dominance of buyers.
The RSI is calculated weekly, for example, the current weekโs RSI is more than 70 which signals an overbought market. The weekly MACD is also bullish, but is slowing a little and is more indicative of a consolidation.The Bollinger Bands, based on weekly data, widen as dispersion increases, indicating heightened volatility in the market.
Future Outlook
In the future, forecasts suggest that factors such as levels of demand and supply, regulatory requirements, advancements in technology, and psychosocial factors will influence Bitcoin prices.
Arguably, one of the most influential factors shaping the future price of BTC is the upcoming halving event scheduled for May 2024. During this event, the reward for generating new BTC blocks will decrease by half, from 6.25 BTC to 3.125 BTC, potentially impacting the supply dynamics and consequently influencing BTC’s price.This leads to an overall reduction in the inflationary effect of bitcoins and a supply shock that may trigger further price increases.
Following the same opinion, Michael Saylor, the co-founder of MicroStrategy and a bitcoin evangelist, estimated that the halving impact could stimulate tenfold demand by the end of 2024, as we now know that demand outpaces supply. There is also a high probability that the SEC will approve spot bitcoin ETFs which will have the knock-on effect of attracting more institutional and retail investors into the ecosystem.
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