In a remarkable shift, Bitcoin has surged to $45,316, marking a 7.06% increase on Tuesday. This breakthrough above $45K comes at a crucial time, just ahead of a potential ETF approval that could significantly impact its market trajectory.
Amidst these developments, ChatGPT sheds light on the role of artificial intelligence in forecasting Bitcoin’s ascent to a staggering $100,000 by 2024.
Meanwhile, political factors such as Donald Trump’s potential loss in the upcoming presidential election are speculated to trigger a stock market crash and possibly usher in a new Great Depression.
Bitcoin Breaks $45K Barrier Ahead of Anticipated ETF Approval
Bitcoin (BTC) has reached above $45,000 for the first time in over two years, and the price is expected to rise further with the upcoming approval of the first spot Bitcoin exchange-traded fund (ETF) in the United States.
The cryptocurrency’s value has now surpassed all 2023 highs, establishing a significant new yearly peak just two days into 2024, after rising more than 6% in the last 24 hours and 170% in the last year. The market is waiting for the SEC’s verdict on 14 pending applications for a spot Bitcoin ETF.
Bitcoin’s latest price spike has sparked controversy among market observers, as it was last seen above $45,000 nearly 20 months ago in April 2022.
While some anticipate a potential “bull pennant” formation leading to a $54,000 gain upon SEC approval, others, such as VanEck advisor Gabor Gurbacs, anticipate an initial drop but enormous trillions in inflows in the future years.
ChatGPT Foresees AI’s Role in Bitcoin’s Potential Rise to $100K
The latest incarnation of the AI chatbot, ChatGPT-4, suggests that Bitcoin’s price might reach $100,000 in 2024 under certain favorable conditions, citing variables such as positive legislative developments, growing acceptance, and currency depreciation.
While it is considered highly speculative, ChatGPT shows the possible positive impact of a spot Bitcoin exchange-traded fund (ETF) approval, which would increase accessibility and liquidity while potentially drawing institutional investors.
“ChatGPT’s got a theory ! Bitcoin could skyrocket to $100k by 2024. Could the magic of #AI help #Bitcoin take this giant leap? Let’s delve into it https://t.co/ltzTMY6aFX. What are your thoughts on this thrilling prediction, folks? #Cryptocurrency“
— Aitor (@Ozpaniard) January 1, 2024
ChatGPT emphasizes AI’s involvement in market analysis, trading techniques, and larger blockchain tech improvements in response to how AI could contribute to this scenario.
AI algorithms, which are capable of digesting massive amounts of market data and spotting trends, can enable faster and more efficient trading execution, but they also warn of potential threats like as hacking and cyberattacks.
The findings of ChatGPT point to a possible uptick in Bitcoin values, owing to AI’s influence on market dynamics and trading techniques.
Trump’s Election Loss Could Signal Stock Market Crash, Warns AI
Former US President Donald Trump has offered a dire warning about the American economy, forecasting a stock market crash worse than 1929 and a Great Depression if he does not win the presidential election.
Trump attacked the current state of the economy, crediting its survival to his administration’s accomplishments. He claimed that the stock market’s strong valuation is due to the expectation of his election victory in 2024.
Donald Trump Warns of Stock Market Crash and Great Depression if He Doesn’t Win Presidential Election
— Bradicoin (@Bradicoin10) January 2, 2024
While official Bureau of Labor Statistics numbers show a 17% increase in prices since President Joe Biden entered office, Trump claims inflation has exceeded 30% in the last three years.
MORE: “If I don’t win, it is my prediction that we will have a stock market ‘crash’ worse than that of 1929 – a Great Depression!!!” Trump wrote Friday night on Truth Social. “Make America Great Again!” https://t.co/UYey17LQrW
— NEWSMAX (@NEWSMAX) December 30, 2023
The impact of Trump’s warnings on Bitcoin prices remains theoretical, but historical evidence suggests that his re-election could spark a positive response in the cryptocurrency market, with Bitcoin expectations reaching all-time highs.
Bitcoin Price Prediction
On January 2nd, Bitcoin, the pioneering cryptocurrency, displayed a significant upward trend, marking an impressive start to the new year. Trading around the $44,501 pivot point, Bitcoin shows potential for further gains, as indicated by key technical levels and market sentiment.
Immediate resistance levels for Bitcoin are set at $46,439, $48,195, and $49,857. These levels serve as potential targets for Bitcoin’s upward journey, suggesting room for growth if the bullish momentum continues. Conversely, support levels are identified at $43,096, $41,884, and $40,238, offering crucial thresholds that could protect Bitcoin from any significant price drops.
Bitcoin Price Chart – Source: Tradingview
The technical indicators present a compelling picture. The Relative Strength Index (RSI) stands at a high 81, indicating overbought conditions. This level could suggest that Bitcoin might be nearing a short-term peak, with potential for a correction or consolidation in the near future. However, the RSI also reflects the strong buying interest and momentum that has characterized Bitcoin’s recent market movement.
Adding to this bullish narrative is the observation of the ‘Three White Soldiers’ candlestick pattern, typically seen as a bullish signal. This pattern suggests a strong buying trend and could indicate that investors are confident about Bitcoin’s prospects. However, the overbought RSI warrants a cautious approach, as the market could be poised for a volatility swing.
In conclusion, the technical analysis points to a bullish trend for Bitcoin, with the cryptocurrency aiming to test and potentially breach higher resistance levels.
