Bitcoin updated its local high above $47k: will the upward trend continue?

The minor pause and consolidation movement of Bitcoin's price near the $44k level has ended. Some investors and analysts had speculated that the cryptocurrency's bullish potential was exhausted and that the $46k level would become the final resistance zone that BTC would fail to break through. However, the trading results of January 9th showed that bullish sentiments continue to update highs. Along with them, Bitcoin's price is updating its local high above the $47k mark with one powerful impulse candle.

Yesterday's price impulse once again proved that as trading activity and fundamental positivity grow, technical analysis becomes the least significant tool for analyzing price movement. The optimistic news background in anticipation of the approval of a spot BTC-ETF continues to push the price of Bitcoin to new heights, but this also carries a danger for the cryptocurrency's quotes.

In the last few days, there has been a lot of positive news around the approval of applications for launching spot BTC-ETFs. It is reported that one of the crypto product issuers, BlackRock fund, plans to invest over $2 billion in ETFs in the near future. The company is also actively raising funds from BTC owners to increase its own positions and strengthen the cryptocurrency's rate. These news correlate with recent information from Glassnode, which reported that "whales" have resumed buying BTC.

Representatives of BlackRock also noted that they expect approval of their application for a spot BTC-ETF this Wednesday, January 10th. All these news are fueling investors' expectations, provoking them to buy BTC. Ultimately, we may observe a premature market reaction to the approval of applications for a spot BTC-ETF, which will eventually lead to a collapse in Bitcoin's price. For the last few months, the anticipation of a spot product has been the driver of the bullish rally, and active accumulation in recent days could make the fall even more substantial.

Additionally, it should not be forgotten that the higher BTC/USD capitalization climbs, the higher investors' profits become. The cryptocurrency has been growing almost continuously, as out of the last 13 weekly candles, 11 have been bullish. Ultimately, the rally in price will lead to large-scale profit-taking, and given the extreme level of anticipation for the BTC-ETF, the approval of the applications could be the turning point, triggering a short-term correction in Bitcoin.

Bitcoin was in a consolidation movement within the $40.5k-$44.5k range for most of December. As a result of yesterday's trading day, the cryptocurrency managed to make a confident bullish breakout of the upper boundary of the channel and momentarily reach the $47.2k level. Subsequently, the asset corrected to the $46.9k level, and the daily trading volumes amounted to $41.3 billion. It is important to note the weak reaction of sellers, which may indicate a further rally in the cryptocurrency's price.

From a technical perspective, the key task for BTC/USD is to consolidate above the $44.7k-$45k level, where the local Fibonacci level of 0.236 is located. Consolidation above this area will allow BTC bulls to be confident in the cryptocurrency's bullish potential and not fix profits at current positions. Considering market sentiment around the 75 mark, investors are aiming for the $50k level as the finale of the epic associated with the approval of spot BTC-ETFs.

As of January 9th, the cryptocurrency market is in a state of euphoria, where the rules of technical analysis do not apply. Most decisions are based on news and rumors, and only key levels of support and resistance play any significant role. Bullish sentiments are growing, and there is no doubt that investors will continue to accumulate BTC coins. Considering also the upcoming inflation report, it is within the cryptocurrency's power to reach the $50k level upon successful consolidation above $45k.