Bitcoin’s Rally Towards a New Yearly High: Could It Reach $48K by Year’s End?

The post Bitcoin’s Rally Towards a New Yearly High: Could It Reach $48K by Year’s End? appeared first on Coinpedia Fintech News

Bitcoin’s price is making headlines, holding steady with a 3.7% weekly gain and securing stability above the $43,600 level. Noteworthy trader Josh Olszewicz injects optimism into the market, suggesting a potential ascent to $48,000 contingent on Bitcoin surpassing the $44,000 mark. 

Meanwhile, this optimistic forecast is based on the technical patterns identified on the cryptocurrency’s price chart.

Reading Chart Pattern 

In a recent tweet post, renowned crypto trader & analyst Josh Olszewicz shed light on the repeated “A&Es,” referring to Adam and Eve patterns. However, this is a double-bottom indicator, which signals a bullish trend reversal. Further, He also notes the potential formation of an inverted head and shoulders pattern, another bullish indicator. 

Eventually, these technical formations, strategically positioned near a critical resistance level, indicate that breaching the $44,000 barrier could unleash a notable upward surge.

Adding to this positive outlook, analyst Jake Wujastyk introduces a symmetrical triangle pattern, heightening expectations for a notable market move. The ongoing discussions about a potential Bitcoin ETF approval in 2024 contribute to the overall excitement and are considered a potential catalyst for increased market vigor.

Correction Seen as Beneficial

While the market shows signs of bullish momentum, some analysts, like Stockmoney Lizards, suggest a correction could be beneficial. A drop below $40k could liquidate some leveraged long positions and lead to retracement towards $38k.

Factors supporting this scenario include the need for a correction after a rally, year-end sales (tax loss selling), and reduced trading activity during the holiday season.

As the market grapples with diverse viewpoints, recent data reveals potential vulnerabilities, with over $100 million in liquidated crypto short positions reported on December 20, the highest in two weeks. BTC’s short liquidations totaled $38.5 million, adding an intriguing layer to the evolving narrative of Bitcoin’s price trajectory.