Bitcoin Price Prediction: Is BTC Set for a Breakout to $120K?
Highlights:
- Bitcoin price is consolidating below $105,115 intra-day
- Bitcoin has a lot of good news going for it despite the consolidation
- The latest move by the SEC could trigger a rally for Bitcoin in the short term
Bitcoin seems to have slowed down today after what appeared to be a possible rebound on January 30. At the time of going to press, Bitcoin was trading at $104,708.89, down by 0.34% in the day. Trading volumes are also down by 28.35% in the day to stand at $37.72 billion. Despite the relatively calm intra-day trading, the odds are high that Bitcoin could be headed much higher in the short term.
SEC Approves Hybrid Bitcoin/Ethereum ETF
One key factor that could trigger a Bitcoin price rally is the SEC’s move to approve a hybrid Bitcoin and Ethereum ETF. In a landmark decision, the SEC has given the green light for NYSE Arca to list and trade shares of the Bitwise Bitcoin and Ethereum ETF.
This innovative hybrid investment product offers exposure to both Bitcoin and Ethereum, the two largest cryptocurrencies by market value. The approval, announced on January 30, highlights the SEC’s growing confidence in crypto-backed financial instruments. It represents another step forward in the mainstream acceptance of digital assets.
The SEC has approved NYSE Arca’s proposed rule change to list and trade shares of the Bitwise Bitcoin and Ethereum ETF. The ETF will hold spot Bitcoin and Ethereum based on their market capitalization weight. https://t.co/OCfu6K5XDr
— Wu Blockchain (@WuBlockchain) January 30, 2025
Hybrid ETF Reflects Growing SEC Openness to Bitcoin and Cryptocurrencies
The SEC’s decision to fast-track the approval process was largely due to the ETF’s similarities to previously approved spot Bitcoin and Ethereum ETFs. This streamlined approach reflects the regulator’s increasing comfort with cryptocurrency-related investment vehicles, setting the stage for more diverse and sophisticated offerings in the future. It is a move that could see investors, both institutional and retail get into more cryptocurrencies with confidence.
Analysts Expect 2025 Cryptocurrency Cycle to Be Longer – Big for Bitcoin
Bitwise Chief Investment Officer Matt Hougan recently shared his outlook on Bitcoin’s price potential. Hougan predicted that Bitcoin could double in price this year, surpassing $200,000. Hougan attributed this growth to institutional inflows into crypto ETFs and increased adoption by corporations and governments.
He also challenged the widely held belief that Bitcoin’s 4-year price cycle is driven solely by halving event. Hougan argued that broader market dynamics and regulatory developments play a significant role.
Technical Analysis – Bitcoin Price Headed for a Retest of Key Resistance
From the charts, Bitcoin is oscillating around the $105,115 resistance. At the moment, Bitcoin is gaining upside momentum and is trending towards this resistance for the second time in the day. If bulls take control and push Bitcoin through the $105,115 resistance for a second time, it could be confirmation that bulls are in control. Such a price move could see Bitcoin rally to $110k in the short term.
On the other hand, if Bitcoin fails to push through the $105,115 resistance, then two scenarios could play out in the day. One would see Bitcoin consolidate between the $105,115 resistance and $103,037 support.
The other scenario would be a price correction that could see Bitcoin lose the $103,037 support and drop to around $100k. Of these scenarios, Bitcoin has higher odds of rallying through the $105,115 resistance and hitting $110k or more.
Recap
Overall, the SEC’s decision highlights the evolving regulatory landscape for cryptocurrencies. The approval of hybrid ETFs like Bitwise’s could catalyze further innovation and adoption. It is a pointer to how much higher Bitcoin price could be headed in the short term. As more investors learn about the move the SEC has made, the odds of a parabolic price move are high. That’s especially true now that the price has held up pretty well since the Fed held rates above 4%.
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Syed Ali Haider
Syed Ali Haider is a contributing crypto writer for Crypto2Community. He is a crypto and blockchain journalist with over six years of experience. Syed Ali is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years. Haider has been featured in a number of high-profile crypto and finance outlets, including Coincult and more.
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