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Bitcoin has not shown any interesting movements in the past few weeks. After a $6,000 surge, the cryptocurrency has settled and has been trading right below the strong resistance level of $31,000 for the past 22 trading days. In addition, $31,000 is the latest swing high on the daily chart, so it has significant importance. In other words, if this level is breached, the chances of Bitcoin's further growth will sharply increase. At the moment, the pair has attempted to pierce this level five or six times, but the number of attempts no longer matters. Currently, the cryptocurrency is trading sideways.
Last week, the US dollar weakened across the market. However, this weakening did not affect the BTC/USD pair. Notably, Bitcoin is also a kind of pair, representing the relationship between Bitcoin and the US dollar. Since the US currency was weakening, Bitcoin had the opportunity to continue its rise but did not take advantage of it. Therefore, we witnessed another attempt to break the level of $31,000, which, like the previous ones, ended without any progress. Nevertheless, the ascending trendline remains, and as long as it is not breached, the bullish trend persists.
As for the fundamental background, Bitcoin has already grown by 100% this year, indicating that it has priced in certain events and news. However, what events could it have absorbed when all central banks continue to tighten monetary policies, and the SEC has initiated legal proceedings against two major cryptocurrency exchanges, Coinbase and Binance? These are negative factors. Let's not forget about the FTX exchange crash. It turns out that the market has already begun to price in the future easing of the Fed's monetary policy and the halving. Both of these events are scheduled for next year, suggesting that Bitcoin can only grow on them.
The legal proceedings between the US Securities and Exchange Commission and the cryptocurrency exchanges may end in favor of the latter. In addition, several major companies have filed applications with the SEC to launch Bitcoin ETFs, which, according to many experts, will increase demand among institutional investors for the world's first cryptocurrency. Therefore, certain growth factors are also present. However, we still believe that Bitcoin is getting ready for 2024.
On the daily chart, Bitcoin completed a downward correction near $25,211. The cryptocurrency quickly surged upwards, but the downward correction may not be over yet. If the price reverses downwards near $31,000, the decline may resume, and selling with a target in the area of $26,000 will become relevant again. If the level of $31,000 is breached, it would be better to consider new purchases with a target of $34,267. Let's not forget about the sideways channel on the 4-hour chart; it is a priority right now.
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