$48k Acts as a Barrier, Safeguarding Against $55k Price Objective
Bitcoin’s journey to $55,000 could encounter little resistance, provided the cryptocurrency can break through a crucial level, according to technical analyst Ali Charts. BTC is poised to reach $60,000, but this outcome hinges on surpassing resistance at the $48,000 mark. This level was last observed in April 2022, following a banking crisis in the United States and the subsequent collapse of Terra’s ecosystem. On-chain data from IntoTheBlock, referenced by Charts, indicates that BTC could target this resistance point after finding support around $42,000. Approximately 2.5 million Bitcoin addresses purchased 1.12 BTC at this level, which is now valued at over $52.5 billion following the cryptocurrency’s recent surge past $47,000.
Two potential catalysts that could drive market prices higher are the impending approval of a spot BTC exchange-traded fund (ETF) and the Bitcoin halving in April. The U.S. Securities and Exchange Commission (SEC) is reportedly close to making a decision on BTC ETFs tied to spot prices, as opposed to futures funds, which are already traded on major exchanges. If approved, this landmark decision could attract significant investments into BTC, as American institutional and retail investors would gain regulated access to Bitcoin exposure. However, there is still a possibility of the SEC delaying or rejecting the applications. Some argue that the impact of the halving event on market prices could overshadow the effects of an approved ETF. The halving, which occurs every four years, reduces the block mining reward and slows down the rate at which new BTC is introduced to the market. This scarcity, combined with strong demand expected from spot BTC ETFs, could potentially drive up prices.
