The crypto market is taking a hiatus from the previous week’s rally which saw Bitcoin (BTC) almost touch $45,000 and Ethereum $2,400. Investor optimism was at the highest level, as experts like Bloomberg exchange-traded fund (ETF) analyst, Eric Balchunas, predicted the Securities and Exchange Commission (SEC) would approve spot Bitcoin ETFs in January.
However, as is common with key events, the rally cools off before the main development. It is possible to see a buy the rumor sell the news narrative.
However, approving a spot Bitcoin ETF could be a game changer, as it would serve as a conduit for new money streaming into the market, followed by a major breakout.
If the market reacts similarly to the approval of the futures Bitcoin ETFs in 2021, which triggered a more than 60% move in the price, the entire market could blossom.
Bitcoin Price Flaunts Buy The Dip Opportunity
Bitcoin price has retraced to $41,808 in the last two days, as traders book profits ahead of the next move likely to break the $50,000 resistance. The 21-day Exponential Moving Average Convergence (EMA) (blue) steadies BTC at $40,654 but if declines continue below $40,000, the 50-day EMA (red) will come in handy at $37,585.
Bitcoin price chart | Tradingview
Buying Bitcoin in December should be a calculated move, either short-term or long-term. Short-term speculation should be tied to the BTC spot ETF while investors with a long-term outlook may want to base their purchase on pre-halving and post-halving rallies, which could propel Bitcoin to a new all-time high.
As for traders, it might be prudent to wait until Bitcoin confirms a rebound before entering new long positions. A sell signal from the Moving Average Convergence Divergence (MACD) indicator suggests BTC might lose more ground before starting the end-year rally.
Shiba Inu Price Signals Breakout
Shiba Inu (SHIB) price briefly broke above $0.00001 last week. After rising to highs of $0.0000105, SHIB started to dump alongside other altcoins.
The second-largest meme coin, trading at $0.00009569 on Tuesday, holds above short-term support provided by the 21-day EMA.
A rebound from this support would seal the deal for the bulls, with traders contributing to the tailwind while entering new long positions in Shiba Inu.
The bullish crossover formed by the 50-day EMA (red) and the 200-day EMA (purple) accentuates the bullish narrative, with SHIB expected to quickly climb above $0.00001 instead of losing more ground.
Shiba Inu price chart | Tradingview
Slightly above the pivotal $0.00001 level, Shiba Inu would encounter more resistance at the double-top pattern, as shown on the chart. SHIB snapped out of the previous uptrend at $0.0000105 (double-top), hence the next attempt must be strong enough to defeat the seller congestion and pave the way for the next target at $0.00002.
Shiba Inu upholds a generally bullish outlook in December, which has the potential to blow out in 2024, especially with the positive sentiment surrounding the potential approval of Bitcoin spot ETFs.
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