(MENAFN- Daily Forex)

• Bitcoin's performance on Thursday showed initial attempts to push higher, although it encountered resistance in sustaining those gains.
• This pattern is consistent with the consolidation phase that has persisted since late November.
• This has only been a bit of a blip, in what looks to be a longer-term trend to the upside in this market.

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This lack of significant upward movement should not come as a surprise, given the rapid price increase that Bitcoin has undergone in a relatively short period. In late August, the cryptocurrency was valued at $25,000, and it currently hovers around the $43,000 mark. Such a substantial price surge has been fueled by several factors, as I am sure you are aware of.

One significant factor contributing to Bitcoin's price optimism is the anticipation of a spot Bitcoin Exchange-Traded Fund (ETF) potentially launching early in the coming year. Many believe that the introduction of a Bitcoin ETF could attract more institutional investors into the cryptocurrency market, although the actual impact remains uncertain. Nevertheless, this expectation has generated enthusiasm among traders and investors Policy

Another factor supporting Bitcoin's bullish sentiment is the shifting monetary policies of central banks worldwide. The United States has already signaled its intention to implement looser monetary policies in 2024. Bitcoin thrives in an environment characterized by loose monetary policy due to its speculative nature. Consequently, short-term pullbacks in its price are often viewed as buying opportunities.

In the event of a pullback, Bitcoin is likely to find support at the $40,000 level, with the $38,000 level serving as additional support, should the price drop that far. I don't think this is likely, but I may suppose.

Conversely, resistance is anticipated at the $45,000 level, with the $47,500 level identified as the next potential target. The $47,500 level has previously played a significant role in Bitcoin's price movements and is expected to be a critical battleground for market participants.

In the end, Bitcoin's recent price action reflects a period of consolidation and uncertainty. While factors like the potential Bitcoin ETF and evolving monetary policies are influencing market sentiment, the cryptocurrency remains in a state of flux. Traders and investors are closely monitoring key support and resistance levels, anticipating the next major move in this dynamic and ever-changing market.

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