Can Bitcoin (BTC) Hit $46K Before 2024?

• Bitcoin surged above $44K amid global developments.
• Analysts eye $46,300 as a potential short-term target for BTC.

Bitcoin’s rollercoaster week concludes with a remarkable surge, surpassing $44,000, buoyed by pivotal global events signaling a seismic shift in crypto adoption.

Argentinian Minister of Foreign Affairs endorsed Bitcoin, paving the way for contract settlement using BTC within the country. Also notably, El Salvador passed legislation granting citizenship to foreign Bitcoin investors, further solidifying its crypto-friendly stance.

After initial volatility and a dip close to $40,000, Bitcoin rallied, challenging downward projections and reclaiming lost market share. Analysts predict a bullish trajectory, with an eye on $46,300 as a potential short-term target, echoing sentiments of market recovery.

Meanwhile, the ongoing debate surrounding the potential approval of the first U.S. Bitcoin spot price exchange-traded fund (ETF) continued. Influential voices, including investor Fred Krueger, expressed optimism despite a seemingly subdued market response.

Krueger speculated on ETF-related cautiousness, attributing it to potential political undercurrents in the U.S. Despite this, an ETF approval could mark a watershed moment for Bitcoin, hailed as the most significant financial development since its inception.

Supporting the recent price surge, on-chain data revealed that 22 whale wallets re-entered positions on December 20, ending a two-week decline in large Bitcoin holdings. This re-entry potentially served as a catalyst propelling Bitcoin above the $44,000 mark.

A Historical Rally Ahead?

Amidst these developments, analyses of Bitcoin’s price movements paint a precarious picture. The daily chart shows a bullish trend, with the 9-day exponential moving average (EMA) currently positioned below the trading price at $43058. However, the daily relative strength index (RSI) suggests a neutral condition, standing at 57.

BTC Price Chart, Source: TradingView

If the price manages to climb above $44,610 then it will likely start a fresh rally towards the $47,900 resistance level. On the other hand, if the price manages to go below the $43,320 level, then it will likely decline further to test the $42,590 support level.