Bitcoin Seeks New Direction Amid December Consolidation: What Levels to Watch

investing.com:

{Bitcoin} continues to consolidate using the $42,700 average level in December as a pivot level. Which direction could the world's largest cryptocurrency move next?

Let's begin by examining Bitcoin from a broader perspective on the weekly chart. Within the context of 2023, Bitcoin operated within an ascending channel, encountering resistance at the upper band of the channel in December.

Conversely, a contrasting chart pattern emerged during the September-October period. During this timeframe, Bitcoin exhibited a marginal horizontal uptrend for a month, finding support in the lower band of the channel. Following this, a surge in demand, fueled by spot Bitcoin ETF news, resulted in Bitcoin gaining over 60% in value over two months.

Currently, there's an observation that the impact of the spot ETF news for Bitcoin has largely been factored into the market. As the year concludes, the expectation is that Bitcoin's consolidation phase may persist over the next 10 days, particularly considering corporate companies reassessing portfolios as part of their New Year plans.

The initial month of 2024 is anticipated to be dynamic for Bitcoin. Market expectations hinge on the approval of the spot ETF product in the second week of January, presenting an unaccounted-for stress factor in the cryptocurrency realm.

While a negative decision or further delay by the SEC seems improbable, potential panic selling could ensue if it materializes. Recent updates on applications have also introduced some uncertainties.

The incorporation of a fiat currency option in ETF redemption introduces the risk of the investment vehicle overly concentrating on Bitcoin prices. This might impact investors' enthusiasm for the product, and persistently low trading