Why is Bitcoin (BTC) Price Charging Towards Make-or-Break Resistance Near $50,000? This Altcoin Raises Impressive $7 Million

Bitcoin has rallied to a 20-month high of above $45,500 in the first 2 days of 2024, fueled by optimism around the prospect of Bitcoin ETF approvals.

The SEC has until January 10th to approve or reject several Bitcoin spot ETF applications. If approved, these ETFs would allow mainstream investors easy exposure to Bitcoin prices, likely boosting demand.

There are differing opinions on whether ETF hype is already priced into Bitcoin’s latest rally. SEC still needs to finalize paperwork, meaning “the announcement likely toward week’s end,” reports FOX Business’ Charles Gasparino.

However, some concerning technical analysis suggests Bitcoin’s surge could be precarious. Popular trader @Maartunn posted on X (former Twitter):

“Open Interest has increased by +$1.3 billion (12%) since the start of the year. Funding Rates shows that these are long positions mostly. That’s fine as long as price remains supported by spot bid, but could be a danger if the price starts moving backwards.”

Here, open interest refers to the total number of outstanding derivative contracts, mainly futures, that have not been settled. As open interest rises, it indicates an influx of leverage and speculative positions.

Funding rates refer to payments between long and short futures traders to balance their leverage. Positive funding suggests an abundance of longs. Maartunn notes that heavy long leverage could spark crashes if spot prices turn south.

Similarly, respected analyst Rekt Capital tweeted:

“Just over 100 days until the Bitcoin Halving. $BTC tends to rally some two months (~63 days) before the Halving for a Pre-Halving rally. Which potentially opens things up to one of the final bargain-buying retraces before the Halving hype kicks in.”

This refers to Bitcoin’s scheduled “halving” in April 2024 which will cut block rewards in half to 3.125 BTC. Historically, prices rally in anticipation of halvings as reduced supply hits. Rekt Capital suggests the next 2 months may bring strong gains interspersed with retraces for buyers to enter.

For now, Bitcoin hovers near $46k resistance. A break above would likely continue the uptrend towards $50k. Otherwise, a pullback near $40k support could offer a swing trade before targeting $50k.

Crypto analyst Andrew Kang told his 191k followers on X:

“Bitcoin at $45k still feels mispriced for 2024 ETF inflows and halving excitement. Market consensus is that ETF is long term bullish for $BTC which is correct, but the frontloading of ETF flows is underappreciated.”

Here, Kang argues that Bitcoin prices still have room to run upwards based on the impending ETF approvals and 2024 halving hype. He explains that most analysts see ETFs as a longer-term bullish catalyst as they would allow mainstream investment funds to easily gain Bitcoin exposure.

However, Kang believes the markets are underestimating the immediate impact of ETF launches. As ETFs come to market, issuers will be engaged in a ruthless battle for assets under management and market share.

Kang notes established gold ETFs hold over $120 billion in assets with 0.6% expense ratios, generating $720 million in annual fees. The net present value of these future fees is likely $10-20 billion or more.

Therefore, Bitcoin ETF issuers have immense incentive to aggressively market their funds at launch, as customer acquisition costs far less in early 2024 compared to future years. Grabbing clients now pays dividends for decades via recurring fees.

Issuers also benefit hugely from young retail traders building small early positions, as these could swell into quarter-million dollar retirement funds over time.

As such, Kang expects a marketing bonanza around ETF launches more akin to the heights of 2021’s bull market. This could provide a short-term boost to Bitcoin demand and prices.

Bitcoin Minetrix Emerges Ahead of 2024 Halving

As Bitcoin mining farms expand operations ahead of April’s halving event, a revolutionary decentralized platform called Bitcoin Minetrix is generating huge buzz.

The upcoming halving will slash Bitcoin block rewards to 3.125 BTC, reducing miner profits. In response, mining companies are aggressively expanding to protect incomes.

Alongside traditional miners, decentralized cloud mining services are also gearing up for the halving. In particular, Bitcoin Minetrix (BTCMTX) is standing out with its innovative “stake-to-mine” concept.

Bitcoin Minetrix enables anyone to passively earn BTC without expensive hardware or expertise. It has already raised an impressive $7.2 million in presale funding.

The platform introduces decentralized cloud mining, allowing participants to rent hashing power and earn mining rewards. This removes the risks associated with closed centralized cloud services.

Instead of locking users into questionable long-term deals, Bitcoin Minetrix uses a tokenized model. Users simply buy and stake BTCMTX tokens to start accruing “Mining Credits”. These credits provide mining time to earn BTC profits.

This mechanism essentially grants two earning channels – staking rewards on the native token, plus Bitcoin profits from mining. BTCMTX tokens offer yields up to 99% APY, while mining profits depend on market conditions.

As the Bitcoin Minetrix presale continues setting new records, the team has big plans for 2024 including exchange listings, marketing campaigns, mobile apps, and expanding operations.

Overall, BTCMTX provides the ideal way to maximize gains from both crypto staking and Bitcoin mining ahead of the halving. The streamlined, decentralized platform opens profitable cloud mining to regular crypto investors.

As the presale rises in price for later participants, wise investors may want to consider the generous early-bird bonuses before it concludes.

Visit BTCMTX Presale

Best crypto platforms in Europe | January 2024

The post Why is Bitcoin (BTC) Price Charging Towards Make-or-Break Resistance Near $50,000? This Altcoin Raises Impressive $7 Million appeared first on BeInCrypto.

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