The S&P 500 Index (SPX) rose 2.49% last week, extending its string of weekly gains to seven weeks, the longest such winning streak since 2017. However, Bitcoin could not maintain its momentum and succumbed to profit-booking by the bulls. Trading resource Material Indicators said in an X (formerly Twitter) post that “ year-end profit taking and tax loss harvesting” will prevail in the short term.

However, a crash is unlikely because several analysts expect the United States Securities and Exchange Commission to approve one or more spot Bitcoin exchange-traded fund (ETF) applications in January. If that happens, it could prove to be a gamechanger for the sector.

Bitcoin is in a strong uptrend. The bears could not pose any challenge at $40,000, which shows that bulls are having their way. Bitcoin may remain under pressure for a few days, but a collapse is unlikely, as traders are expected to buy the dips in anticipation of a spot Bitcoin ETF.

Bitcoin’s tight range between the 20-day EMA ($41,323) and the downtrend line resolved to the downside on Dec. 18, but the breakdown lacks momentum. The flattening 20-day EMA and the RSI near the midpoint suggest a range-bound action in the near term. If the price slips below $40,000, the BTC/USDT pair could collapse to the vital support at $37,980. This level is likely to witness aggressive buying by the bulls.

Alternatively, if the price turns up and climbs back above the 20-day EMA, it will suggest strong demand at lower levels. The bulls will then try to overcome the barrier at the downtrend line. If they do that, the pair may jump to $44,700.

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