July 20, 2024

Bitcoin set to end 2023 on firm note – Cryptocurrency News

  • Bitcoin on track for another positive week

  • BlackRock updated its ETF filling on Monday

  • Attention shifts to 2024 developments

Bitcoin ascends towards recent peak

The king of cryptocurrencies is on track to clock another positive week and extend its impressive performance to what has been a solid year so far. On Monday, BlackRock updated its spot-Bitcoin ETF filling to permit cash redemptions, which is believed to bring the final approval one step closer. This development was cheered by crypto investors, but excitement seems to be constrained as the final decision is scheduled for early next year.

Of course, the latest gains come in a pre-Christmas holiday period, which is usually characterised by low liquidity, thus any moves could be somewhat overstated. Nevertheless, cryptos have been rallying in the second half of the year without any material update on the ETF story, making the latest uptick somewhat justified. On Friday, Bitcoin prices touched $44,412, a tad below the recent 20-month peak of $44,785.

Focus shifts to next year catalysts

Crypto trades are bracing for an eventful year that could potentially solidify and extend the 2023 bull market. The first headwind could come in early January, when the Securities and Exchange Commission (SEC) is anticipated to decide on the approval of spot-Bitcoin ETFs, with the positive outcome being already priced in.

Another decisive factor could be the Bitcoin halving that is scheduled to occur on Friday April 19, which will essentially cut Bitcoin mining reward in half as its supply is supposed to be capped at 21 million coins. Historically, Bitcoin and cryptos in general have exhibited impressive performance in halving years, something that is increasing the bulls’ appetite for 2024.

Finally, the Fed will enter a rate cut cycle in 2024, which is considered a bullish driver for risk-sensitive assets.

Technical levels to watch

BTCUSD has experienced a massive surge in the second half of the year, generating a series of consecutive multi-month highs. Although the price experienced a pullback following its fresh 20-month peak of $44,785, the digital coin has staged a solid rebound, setting the stage for fresh highs even before the year-end.

If the recovery resumes and the price storms to new highs, immediate resistance could be met at the February 2022 resistance of $45,855. Failing to halt there, Bitcoin may face the March 2022 peak of $48,226.

On the flipside, bearish actions could send the price lower to test the recent support of $40,175. Further declines might then cease at the November support of $35,000.

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