Bitcoin bulls attempt to overcome $44K resistance

Bitcoin price skyrocketed this week shooting up to its highest level in over a year and a half. Bitcoin’s advance was transferred to other major cryptocurrencies as well. On Wednesday, however, crypto markets struggled to maintain bullish momentum as crypto bears fought to take control. 

Bitcoin price tested the key $44,000 level resistance on Wednesday but did not manage to overcome this barrier. If BTC price declines, support can be found near $37,500, while further resistance may be encountered near $45,000. 

Ethereum also tested the key $2,300 level resistance on Wednesday but did not manage to break through. If Ethereum's price declines, it may encounter support near $1,980, while if it increases, resistance may be encountered near $2,300.

Crypto markets have gained strength in anticipation of the approval of crypto spot exchange-traded funds (ETF). Approval expectations of spot ETFs by the Securities and Exchange Commission (SEC) are boosting crypto markets. BlackRock and other institutions have applied for a Bitcoin ETF, which would bring more institutional and retail money into crypto markets. The SEC has been hesitant regarding the future of Bitcoin ETFs, delaying the decision. BlackRock has also filed an ETH spot ETF for approval, causing Ethereum prices to surge.

Reports that a date has been set for Bitcoin spot ETF approval between January 5 to January 10 drove Bitcoin price up. In addition, rumors that SEC representatives have met with BlackRock and Grayscale boosted the bullish market sentiment. The hype created over the news boosted crypto markets and most major cryptocurrencies gained strength over the weekend.

Increases in central banks’ interest rates are putting pressure on risk assets. Most major central banks, however, are hitting pause on rate hikes, propping up crypto markets. FOMC members have voted to keep interest rates unchanged at a 22-year high within a target range of 5.25% to 5.50%. The Fed’s decision to pause rate hikes has increased risk appetite, boosting cryptocurrencies, especially since markets anticipate that the Fed has reached its rate ceiling. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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