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Bitcoin (BTC) Eyes a Fresh Multi-Month High, Solana (SOL) Continues to Outperform

Bitcoin (BTC) Eyes a Fresh Multi-Month High, Solana (SOL) Continues to Outperform

Nick Cawley, Senior Strategist

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Bitcoin (BTC), Solana (SOL) Prices, Charts, and Analysis:

  • Bitcoin - a break above $44.7k brings $48.2k resistance into play.
  • Solana – outperformance continues
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The multi-week Bitcoin rally remains intact and is pushing the largest cryptocurrency by market cap to levels last seen in April last year. The spot Bitcoin narrative remains the main driver of positive sentiment, while the technical Bitcoin halving event, expected in mid-April, is supporting the push higher. A decision by the SEC on multiple spot Bitcoin ETF applications is expected by early January and a positive decision is currently seen as the most likely outcome. Bitcoin traders are actively watching any SEC announcement at the moment and, it seems, buying Bitcoin ahead of the decision.

The technical outlook for BTC/USD is positive with the weekly chart showing a bullish flag formation being formed, while a bullish 50-day/200-day gold-cross is close to being made. The CCI indicator shows BTC/USD as overbought, suggesting a period of consolidation before any move higher. On the weekly chart there is little in the way of resistance ahead of $48.2k. Support is seen at $40k and a fraction under $38k.

Bitcoin (BTC/USD) Weekly Price Chart – December 21, 2023

image1.png

Solana (SOL), a popular Layer 1 blockchain, has been on a tear over the past weeks, rallying from just under $20 in late September to a current spot price of $88. This performance has refueled the Solana vs Ethereum debate as to which is the best L1 blockchain. While Ethereum dwarfs Solana by market capitalization ($269 billion vs $37.5 billion), Solana has outperformed Ethereum strongly in the past weeks. The SOL/ETH spread has just broken above the 61.8% Fibonacci retracement November 2021-Novemebr 2022 move and if this break is confirmed, the June 2022 swing high at 0.04068 comes into play ahead of the 78.6% Fib retracement just under 0.4700.

Solana/Ethereum Spread Weekly Chart – December 21, 2023

image2.png

Charts via TradingView

What is your view on Bitcoin – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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