The Bitcoin (BTC) price has been flirting around for a while at $42,500 levels as investors eagerly await the launch of the first spot Bitcoin ETF in the US. A report from last week suggests that the approval from the U.S. SEC is most likely to arrive this week.

Will Bitcoin ETF Be A Sell the Event News?

After a solid 160% run-up last year in 2023, analysts believe that the BTC price could see some retracement soon after the Bitcoin ETF arrival. Probably, BTC could enter a sideways consolidation until the Bitcoin halving scheduled around April 2024.

Renowned investor and crypto analyst Rekt Capital shares insights on Bitcoin’s recent monthly close, drawing attention to key support levels and historical patterns.

In a recent update, Rekt Capital highlights that Bitcoin has historically exhibited volatile retests when hovering around the $41,000 support level (represented in blue). During these retests, downside wicks extended to approximately the $37,000 region, suggesting a pattern in the price action.

Based on historical data, Rekt Capital suggests that any potential dip to the $37,000 level could be considered a healthy retracement. The analyst points out that Bitcoin has experienced similar price movements in the past, and such patterns have historically contributed to the cryptocurrency’s overall market health.

#BTC

New Monthly Close is in

The last two times Bitcoin retested ~$41000 (blue) as support, price produced volatile retests

The retests saw downside wicks go to as low as the ~$37000 region

History suggests any dip into ~$37000 would be healthy$BTC #Crypto #Bitcoin pic.twitter.com/AVBF7WYAYL

— Rekt Capital (@rektcapital) January 1, 2024

Moreover, Rekt Capital emphasizes that with just over 100 days until the Bitcoin Halving, any deeper retracements in the pre-halving period could present ultimate bargain-buying opportunities for investors. As the market continues to evolve, traders and investors are closely monitoring these key support levels and historical patterns for potential insights into Bitcoin’s future price movements.

BTC Upside Remains Capped, Bears’ Grip Strengthens

The Bitcoin options data for January 12 has been showing weakness recently. Furthermore, analysts believe that even if the BTC price rallies on the ETF approval, the upside remains limited from here.

The current state of the Bitcoin market is marked by lower highs and lows, signaling an increasing strength among bears, according to a recent analysis. Notably, the previous peak, exceeding $44,800, has yet to undergo a retest, further supporting the bearish sentiment.

Analysis of the chart reveals that Bitcoin’s price has recently fallen below the daily EMA-20, situated at $42,542, a level not breached in the past couple of months after reaching a multi-month high. The surge in bearish volume, reaching a 2-day peak and recording the highest levels since April, suggests the possibility of an impending correction.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.