BTC Market Update 12/30/2023

BTCUSDT Bitcoin has recently seen a deceleration in the mid-$40,000 range, encountering resistance levels between $43,000 and $44,000 on both a weekly and daily basis. From a technical standpoint, surpassing this resistance zone is crucial for supporting a bullish continuation. Currently, the market is facing challenges in overcoming these levels.

To approach this situation cautiously, a positive sign of momentum would be a weekly close above $44,100. Alternatively, a more assertive stance requires a daily close above $43,900, indicating strength in the short-term trend.

Traders focusing on technical pullbacks to support levels should consider $37,000 as the earliest significant pullback level on the daily chart. However, this may be deemed an aggressive entry point.

Beyond technical analysis, a pivotal factor is the imminent decision on the spot ETF, expected in early January. This event has the potential to significantly influence market dynamics, and we anticipate it to be a "sell-the-news" occurrence that bottoms shortly before a surge towards the halving.

Prudent trading strategies involve either maintaining a long position from a lower entry point while anticipating volatility around the ETF announcement or adopting a wait-and-see approach until the aftermath of the ETF decision becomes clear.