Bitcoin traders expect breakout as bulls cling to $44,000 ahead of ETF

Bitcoin hovers around $44,000 in the first weekly close of 2024 as multiple new volatility catalysts emerge.
BTC 4-hour price chart | Source: TradingView

Bitcoin traders anticipate the end of the range movement

Data from TradingView shows that volatility in BTC price performance narrowed over the weekend.
Markets remain nervous about how BTC might react to the approval or rejection of the first US Bitcoin spot exchange-traded fund (ETF) – expected to be launched on October 10. first.

As reported, this important event is widely expected to deal a temporary blow to bulls, pushing prices to retreat in a “semi-truth” event. On the contrary, others see it as an opportunity to suddenly increase prices, challenging key psychological levels.
Regardless of which direction this trend may go, indicators still point to a breakout from the tight intraday range.
Among them is the Bollinger Bands volatility indicator, which is currently narrowing on daily timeframes as a classic precursor to range expansion.
Trader and commentator Matthew Hyland told subscribers on X (formerly Twitter): “Bollinger Bands tighten even further heading into ETF week.”

BTC chart and Bollinger Bands data | Source: Matthew Hyland/X

Fellow trader Daan Crypto Trades added that “spot spreads” are once again active in the Bitcoin market, as derivatives traders appear to be wary of going Long or Short after last week's rapid liquidation .

Source: Daan Crypto Trades

“The longer we hover around this price range, the more positions are formed with stop losses/liquidations above and below the price,” he continued, along with a heatmap of BTC/USDT liquidity have leverage on the world's largest exchange Binance.

BTC/USDT liquidation data | Source: Daan Crypto Trades

Bitcoin ETF Overshadows US CPI, PPI Data
While attention remains focused on ETFs, macroeconomic headwinds await.
These are data showing the state of US inflation, with December figures for both the Consumer Price Index and Producer Price Index due out in the coming days.
Traditionally a source of short-term volatility for cryptocurrencies and risk assets, the data release looks set to show inflation continuing to decline.
As reported, the main outcome of this – the US Federal Reserve “pivoting” interest rate policy – is currently not expected to occur at the next dedicated meeting at the end of the month.