With Bitcoin (BTC) price hanging around the $44,000 zone and trading sideways for the past few days, investors are wondering whether the trend could change in the near future, particularly amid the looming possibility of an approval of the first spot Bitcoin exchange-traded fund (ETF).
As it happens, Bitcoin is looking at one of the strongest support walls between $42,560 and $43,245, at which price traders purchased around 1.11 million BTC and have not sold them yet, according to the analysis shared by cryptocurrency expert Ali Martinez in an X post on January 7.
In line with the unspent transactions output (UTXO) realized price distribution (URPD) chart, Martinez opined that the flagship decentralized finance (DeFi) asset managing to hold above this strong support level would indicate a lack of “significant resistance ahead that will prevent it from advancing further.”
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On the other hand, Bitcoin failing to maintain its position above the said wall would potentially lead to “a downswing to the next critical area of interest between $26,770 and $30,202,” which is a very low price target but, nonetheless, an opportunity for latecomers to ‘buy the dip.’
Bitcoin price analysis
Meanwhile, Bitcoin was at press time changing hands at the price of $43,971, which indicates a modest decline of 0.02% in the last 24 hours, a 3.16% gain across the previous seven days, as well as a slight increase of 0.28% on its monthly chart, according to the data retrieved on January 8.
All things considered, the maiden crypto asset might be dragging its feet at the moment, but strong fundamentals, along with the possible spot ETF approval and a massive spike in whale transactions, could prop it up. However, on the odd chance it fails to sustain the above level, it could, indeed, drop to the $26,000 target area.
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