The year has been a positive one for Bitcoin (BTC) so far, with the cryptocurrency rising more than 120%, indicating a significant improvement in crypto sentiment. Data from BitInfoCharts shows that a sharp increase in crypto wallets holding more than $1 million in Bitcoin has occurred this year, jumping from 23,795 on Jan. 1 to 81,925 currently.
Despite this substantial rally, the near-term outlook for Bitcoin could face challenges as investors digest important macroeconomic data and events scheduled for the upcoming week. The release of the Consumer Price Index on Nov. 14, followed by the Producer Price Index data on Nov. 15, as well as the Nov. 17 deadline to avoid a potential partial United States government shutdown could all lead to short-term volatility in the market.
While a short-term pullback in Bitcoin could be healthy for the long-term market trend, many analysts anticipate a potential rally for Bitcoin in 2024. This optimism is fueled by the expectation of a spot Bitcoin exchange-traded fund finally receiving regulatory approval.
The performance of various cryptocurrencies, including Bitcoin, is under scrutiny. Analysts and traders are closely monitoring the charts to gauge whether Bitcoin and select altcoins will start a short-term correction or if the bulls will maintain their buy pressure and clear the respective overhead resistance levels.
Looking at the performance of the S&P 500 Index, it’s apparent that the bulls are currently in command, with the index rebounding from the neckline on Nov. 9. A break and close above the downtrend line could clear the path for a rally to 4,512, but bears are expected to fiercely protect the downtrend line.
The U.S. Dollar Index also tumbled below the descending channel pattern on Nov. 3, but the bears have not been able to start a deeper correction. The index’s recovery has reached the 20-day EMA, and whether the sentiment turns negative or positive from this point will be closely watched by traders.
Bitcoin’s price analysis continues to show it holding near the channel’s resistance line, but the lack of momentum suggests that demand dries up at higher levels. If the price re-enters inside the channel, it will suggest that the breakout on Nov. 9 may have been a bull trap, and short-term traders may book profits, pulling the price toward the 20-day EMA.
Ether, another major cryptocurrency, rebounded off the psychological level at $2,000 on Nov. 12, suggesting that buyers are attempting to flip the level into support, with the potential for the pair to soar toward $3,000.
The price analysis for other major cryptocurrencies including BNB, XRP, Solana, Cardano, Dogecoin, and Chainlink also provides insight into the current performance of these assets and their potential near-term movements.
Overall, the cryptocurrency market is poised for continued volatility, with traders closely monitoring various macroeconomic and technical factors to determine the future direction of Bitcoin and other major cryptocurrencies.