Bitcoin Price Analysis: BTC Exposed, ETF Hopes Dimming?

Dalmas Ngetich

1 year ago

2 mins read

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Bitcoin Price slide, potential support at $3,400 or 78.6 percent Fibonacci level
SEC may not approve Bitcoin ETF
Reaction at $3,700 important for bulls

In the short-term, sellers seem to be in charge and yesterday’s drop below our immediate support at $3,700 may lead to reductions towards $3,400. In the midst of this, we are net bullish because of buy pressures of week ending Dec 23.

Bitcoin Price Analysis

Events of the week ending Dec 23 and consequent follow through reinvigorated bulls. Regardless, the fact that prices reversed from the $4,100-200 resistance zone at the back of high volumes meant sellers are back in contention and the third phase of a classic bear breakout pattern—the trend resumption phase is in progress. Going forward, the reaction of BTC prices at the 78.6 percent Fibonacci retracement level at $3,400-50 zone could define medium-term price trajectory.

Fundamentals

Surprisingly, the question of Bitcoin ETF approval appears to be shifting from regulatory compliance to market readiness. Cynics are not confident about the maturity of the sector and whether existing infrastructure, especially on the custodial side of the equation, shall handle the expected transaction deluge from institutional grade and HNW investors.

So far, the SEC has rejected nine application, and the VanEck, SolidX and CBOE application stands out. According to last years, rumors may be the first to be approved. However, Meltem Demirors, during Ran Neuner’s CNBC Crypto Trader said there is no way this application will get ticks from the SEC and that there are far few upsides for the US SEC.

Candlestick Arrangement

Technically, bulls have a chance. Founding our optimism are bulls of the week ending Dec 23 and the failure of bears to reverse these gains four weeks after confirmation by the first week of 2019. Moving on, we shall retain a bullish outlook even if sellers appear to be back following Jan 13 close and break below the $3,700 , the base of late Dec 2018, early Jan 2019 bull flag.

While the path of least resistance is southwards, assuming there is confirmation of yesterday’s losses, immediate support will be at $3,400-50 zone marking the 78.6 percent Fibonacci retracement level of Dec 2018 high low.

Drops below this support will inevitably lead to depreciation towards $3,220 or Dec 2018 lows. On the flip side, reversal at spot or from $3,400 could lead to gains above $3,700 and $4,000. However, we recommend patience until after there is a rally above $4,500 which could potentially open doors for $6,000.

Technical indicators

Behind Jan 10 declines were high volumes reflecting those of Nov 20. Both propelled bear bars. Therefore, for our projection to be accurate—short-term bullish in line with late Dec 2018 gains, a counter bull bar backed by high volumes—preferably above 35k or Jan 10 volumes should print driving prices above $3,700 ideally from spot prices.

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.