Key Takeaways:
Technical and on-chain indicators show that a Bitcoin bull cycle might be expected soon as the SEC is in advanced talks with Grayscale, BlackRock and others for an ETF approval.
January first or second week, mostly between 8th – 10th, an ETF approval is expected, according to many analysts.
Currently there are a few indicators which are strongly suggesting that there is an upcoming bull cycle which could start as soon as first week of January 2024.
However, like all assets such as stocks and crypto, a bull-cycle is only initiated by a major event which in the case of Bitcoin seems to be its ETF approval.
Currently we are witnessing two major signs that indicate an upcoming bull cycle in Bitcoin.
NUPL is a key on-chain indicator shows that how much funds are in profits and yet have realized profits (not sold crypto).
#NOTE: Realization is the situation when people are selling Bitcoins and get to take out their profits. This is because they expect prices won't move further.
Each time NUPL has crossed beyond a certain limit, Bitcoin prices have jumped up. In late 2023 too, Bitcoin NUPL is increasing which shows a market is getting more profitable.
The MVRV ratio shows the ratio of Bitcoin's Market Cap to Bitcoin investors' realized value. High MVRV value means more people are holding Bitcoin in expectation of higher profits. The below chart shows a rising MVRV ratio towards the end of 2023.
The Bitcoin ETFs are set for a window of approval by January 8-10, 2024. This is expected to be a major kickoff event for a bull cycle in Bitcoin and therefore in crypto markets.
The SEC has also given ample hints that it might approve a spot Bitcoin ETFs this time. Now that Blackrock and SEC are in advanced round of talks for an ETF, it now seems imminent that SEC might give in after a pivot in it's approach.
Gary Gensler, who remained against any ETF approval has recently hinted on his change of stance which seems to be motivated by the Grayscale win against the SEC.
Spot Bitcoin ETFs would allow common people to invest in Bitcoin without knowing how to buy, store and maintain cryptocurrencies. This would remove the only roadblock to mass purchase of Bitcoins.
Bitcoin has one of the best returns in the last one year. Its returns were 272% within 2023 from $16,398.14 to $44,705. Further Bitcoin is very close to break a major resistance of $47,000 which it last touched in March 2022.
Bitcoin rose from $16,398 to $44,705 in six major phases.
Daily charts show that Bitcoin price has been in consolidation since Dec 05, 2023 with a resistance near $44,800. Indicators are also indicating mixed signals.
Therefore, we suggest that if you are taking long positions in Bitcoin or are about to buy Bitcoin, you could keep a stoploss at $41.5k. On the upper side, prices of $47k might arrive once Bitcoin crosses $44.8k
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.