As optimism returns to the cryptocurrency market, the price of its representative asset, Bitcoin (BTC), has briefly crossed the threshold at $44,000 and reached its 10-day high thanks to the anticipation of approval of the first Bitcoin exchange-traded fund (ETF) and an increase in whale wallets.
Indeed, 22 crypto wallets with more than 100 BTC in their possession have returned to the network after a two-week decline, leading the flagship decentralized finance (DeFi) asset to hit $44,200, according to the data shared by the crypto market intelligence platform Santiment on December 20.
On top of that, the platform’s team observed that Bitcoin’s daily relative strength index (RSI) had declined below 45 for the first time since October 15, “precisely when bull rally first began,” arguing that the maiden cryptocurrency could continue toward $45,000 “if these two signals remain favorable.”
Bitcoin price analysis
At press time, the largest crypto asset by market capitalization was changing hands at the price of $43,829, representing an increase of 2.48% in the last 24 hours, a 2.16% gain across the previous seven days, and a more significant 17.58% advance on its monthly chart, as per the data on December 21.
All things considered, $45,000 is a more likely scenario for Bitcoin in the near future, although $50,000 is not out of the question, particularly as it has made a breakout at $42,500 and completed a “perfect retest” earlier, as noted by the pseudonymous crypto market analyst Trader Tardigrade.
Furthermore, crypto trading expert Michaël van de Poppe believes Bitcoin’s next step could be to test the area right below $50,000 ahead of the approval of the first spot BTC exchange-traded fund as it successfully tested the lows, and the correction seems to be over, Finbold reported on December 19.
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