Bitcoin Witnesses Brief Correction Post Recent Consolidation

• At the time of writing, Bitcoin is trading at $42,512 down 1.50% in the last 24 hours.
• If the price falls below $42,320 then it will likely test $41,880 support level.

Bitcoin has bounced back from its losses in 2022, reaching a new annual high and exhibiting indications of a robust year-end. Looking at past trends, it seems like there may be more growth ahead. This month, BTC reached a new year high of more than $44,000, recouping most of the losses suffered in the disastrous year 2022.

As a result of its stellar success in the fourth quarter, it is ready for “a strong year-end” according to Kaiko. The crypto data source detailed the only two instances in which BTC achieved a higher finish: in 2020 and 2016.

However, the crypto financing saw a significant drop in 2023, according to data from DefiLlama. Crypto firms raised around $22 billion last year, with March 2022 seeing the most influx of $3.677 billion. The total amounts raised in 2023, however, amount to about $6.25 billion. When compared to 2022, it is a staggering 70% drop.

The investors and traders are excited as the U.S SEC’s decision on the approval of a spot Bitcoin ETF nears the deadline of January 10th. If this proposal is greenlit, it may pave the way for investors to switch to Bitcoin without really owning any of the cryptocurrency.

Minor Correction Underway

At the time of writing, Bitcoin is trading at $42,512, down 1.50% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is up 34.42%. 

Source: CoinMarketCap

If the price manages to climb above $43,730 level then it will likely witness further surge to test $44,290 resistance level. However, if the price falls below $42,320 then it will likely test $41,880 support level.