As the crypto market enters another week of trading, Bitcoin (BTC) has seen a slight decline to $41,978, dropping by nearly 50% on Sunday. This move coincides with a significant amount of Bitcoin, worth approximately $860 million, being transferred to exchanges, which could be indicative of a potential major sell-off on the horizon.
Adding to the market’s unease, Coinbase is set to confront the SEC in court after its plea for clear cryptocurrency regulations was denied, escalating tensions within the industry.
#Bitcoin stalled around $42,000 this week as investors moved $860 million of $BTC to exchanges, signaling profit-taking, @intotheblock noted. Despite the short-term pullback, a “perfect storm is brewing” for 2024, an expert said.https://t.co/rb0zHKkVGQ
— CoinDesk (@CoinDesk) December 16, 2023
Meanwhile, Blackrock has engaged in discussions with the SEC on four separate occasions regarding its application for a spot bitcoin ETF, highlighting the growing interest and scrutiny in the space.
Amidst all this, there are three network movers within the BTC ecosystem that are slipping under the radar, potentially setting the stage for unexpected market dynamics.
Let’s delve deeper into this.
Coinbase vs. SEC: A Battle for Regulatory Clarity
Surprisingly, the news that Coinbase Global’s petition for regulatory clarity was denied by the US Securities and Exchange Commission (SEC) has helped to drive up the price of Bitcoin.
Market players appear to view the development as evidence of the Bitcoin space’s resilience despite the regulatory setback.
Investors may see the legal challenge against the SEC as a step toward resolving regulatory issues, given the signs of improvement that Bitcoin has demonstrated.
BREAKING: SEC and Chair Gary Gensler denied Coinbase’s petition for rulemakinghttps://t.co/qp8CkdU0r5
— Blockworks (@Blockworks_) December 15, 2023
Some traders’ confidence has been bolstered by Coinbase’s pursuit of further clarity through legal channels, which has positively impacted Bitcoin’s prices.
Because cryptocurrency markets are so dynamic, investors should continue to be vigilant for any occurrences that could signal a change in the market.
Blackrock’s Pursuit of a Bitcoin ETF: In-Depth Dialogues with the SEC
The world’s largest asset manager, BlackRock, has met with the US Securities and Exchange Commission (SEC) four times to discuss its proposal for a spot Bitcoin exchange-traded fund (ETF). The primary topic of these meetings was the proposed rule change by Nasdaq to list and trade shares of the iShares Bitcoin Trust.
Recently, the SEC has also engaged in discussions with Hashdex, Fidelity, Franklin Templeton, and Grayscale Investments regarding their applications for spot Bitcoin ETFs.
BIG BREAKING
BlackRock had another meeting with the SEC last night. pic.twitter.com/1qrMO13SWr
— BITCOINLFG® (@bitcoinlfgo) December 16, 2023
Notably, SEC Chairman Gary Gensler stated that the regulatory body is reassessing spot Bitcoin ETF submissions in light of recent court decisions. This has increased expectations that the SEC will approve spot Bitcoin ETFs, positively influencing Bitcoin’s price.
According to Bloomberg analysts, there is a 90% chance that the proposal will be approved by January 10. Such approval could lead to increased investor optimism and potentially boost demand for Bitcoin.
Under the Radar: Three Overlooked BTC Network Movers
As the main driver of the cryptocurrency market, Bitcoin (BTC) continues to be the market leader, attracting considerable attention. To assess Bitcoin’s performance and growth, investors closely monitor several parameters beyond standard indicators like those on CoinMarketCap.
Bitcoin’s Total Hashrate Regains Upward Momentum Alongside Hash Price Rise
Barring any major shifts in the coming week, Bitcoin’s difficulty is poised for an upswing. Projections based on current data suggest an increase ranging from 1.64% to 4.5% on Dec. 23. According to data…
— Samantha Renolds (@SamanthaRenolds) December 17, 2023
Three important on-chain indicators demonstrate its dynamics.
First, according to the distribution of addresses based on holding duration, 69.23% of all addresses are ‘Holders,’ meaning they have retained Bitcoin for more than a year. This group significantly outnumbers ‘Traders’ (6.78%), who hold for at least three months, and ‘Cruisers’ (23.99%), who sell frequently.
Second, the hashrate—a proxy for Bitcoin’s network difficulty—is crucial. On September 1, the hashrate was 368,924,260.618 TH/s, and it has currently risen to 493,313,217.742 TH/s. A higher hashrate not only enhances network security but also indirectly contributes to the asset’s scarcity.
Lastly, the exchange net flow, which is currently a negative $62.57 million, indicates a net outflow from exchanges. This trend could reduce selling pressure and improve sentiment surrounding Bitcoin’s price. These measurements might be viewed positively by investors, potentially boosting Bitcoin’s price.
Bitcoin Price Prediction
Bitcoin, the forerunner of the cryptocurrency market, is trading at $42,375 today, with a substantial 24-hour trading volume of $17.26 billion.
Analyzing the 4-hour chart, Bitcoin’s pivot point is at $41,735, coinciding with the 38.2% Fibonacci retracement level. We observe immediate resistance at $42,885, followed by higher resistance levels at $44,738 and $46,020.
#BitcoinUpdate: BTC trades at $42,375 with a 0.17% uptick.
Key levels to watch:
Pivot: $41,735
Resistances: $42,885, $44,738, $46,020
Supports: $40,700, $39,775, $38,350 RSI at 43, hinting neutrality.
Above $41,735? Bullish trend ahead! #CryptoNews #BTCForecast
— Arslan Ali (@forex_arslan) December 17, 2023
Conversely, the immediate support lies at $40,700 (38.2% Fibonacci level), with further supports at $39,775 (50% Fibonacci level) and $38,350 (61.8% Fibonacci level).
The Relative Strength Index (RSI) is currently at 43, indicating a neutral market sentiment. This figure suggests neither overbought nor oversold conditions, but a potential leaning towards bearish sentiment.
The 50-Day Exponential Moving Average (EMA) is at $42,300, closely aligned with Bitcoin’s current price, indicating a potential short-term bullish trend.
Bitcoin Price Chart – Source: Tradingview
Chart analysis reveals an upward trendline supporting Bitcoin around the $41,735 mark. A closure of candlesticks below this trendline or the pivot point area could trigger a bearish momentum, driving prices towards the 50% or 61.8% Fibonacci levels.
In conclusion, the overall trend for Bitcoin appears bullish above the $41,735 level. The short-term forecast suggests that Bitcoin may test the resistance levels in the coming days, particularly if it sustains above the pivot point and the 50 EMA.
However, investors should remain vigilant for any shifts below these critical levels, which could indicate a change in market sentiment.
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