I buy BTC at $44,050, with a stop at $39,000 and a target above at the $46,140 level. I would do so with a smaller position though.

• In Monday's trading session, Bitcoin experienced a slight rally, although it remains within a consolidation range.
• The key level to watch is $44,000, which is likely to serve as short-term resistance.
• A successful break above this level could potentially lead to further gains, with targets at $46,000 and eventually $48,000.

(Click on image to enlarge)

In case of short-term pullbacks, support is expected around the $42,000 level. A breakdown below this point could shift focus towards the $40,000 level. It's important to keep a close eye on interest rates in the United States, as any significant rise may have a negative impact on Bitcoin. The initial appeal of Bitcoin was tied to the concept of money printing, but if the Federal Reserve adopts a tighter monetary policy for an extended period, it could dampen enthusiasm in this market.

Despite short-term fluctuations, there is an underlying belief that Bitcoin may strive to reach not only the $48,000 level but also the $50,000 level in the long run. Investors with a longer-term perspective may find buying opportunities during short-term pullbacks.

It's worth noting that there exists a negative correlation between Bitcoin and interest rates. Although interest rates experienced a slight increase on Friday, the bond market generally anticipates multiple rate cuts by the Federal Reserve this year. If this prediction materializes, it could provide strong support for Bitcoin's upward trajectory over the long term.

ETF Matters

Furthermore, there is a resurgence of Fear of Missing Out (FOMO) in the market, which could fuel further upward movement in Bitcoin's price. However, it's essential to acknowledge that the introduction of Exchange-Traded Funds may introduce new dynamics into the Bitcoin market. These ETFs may empower sellers to exert influence, and this could potentially alter the nature of the BTC market in the coming year.

In conclusion, while Bitcoin may encounter short-term challenges and resistance at the $44,000 level, it remains an asset of interest for investors. The action between interest rates, Federal Reserve policies, and market sentiment will likely shape Bitcoin's journey in the months ahead. Observing how these factors unfold will be crucial for those actively engaged in the Bitcoin markets.

More By This Author: