In these last days of 2022, crypto holders are watching Bitcoin alongside their celebrations, hoping that it has the support it seems to be working for so far, around $16,600.
Despite everything, after a year of continuous decline, optimists and impatient people are frantically discussing the subject of the trend reversal, and Bitcoin get back to its former ATH (All Time High) around. of the $69,000 and I hope it will happen again soon marking a new cycle.
On the side positive indicators, some analysts recently mentioned some significant bullish variations on significant units of time, that is weekly. Second, the historical correlation between Bitcoin and the stock market so far gave reason for hope for the beginning of a reversal, since the American indices appeared to be the first signs of a bearish trend that was running out of steam.
However, this correlation was the base due to FTX matters, and BTC, since then, doesn’t seem to want to celebrate good news like Wall Street does. The FTX case, precisely, is perhaps the obstacle that complicates the short-term boom.
The major players in the market are competing in communications for restore the image of the sector, especially with the launch of support funds, but this does not seem like much at the moment. In this controversy, the confidence of some investors has been broken, and many are reluctant to take their profits indefinitely.
We could also mention inflation, among the reasons for the long-awaited Bitcoin trend reversal. In response to this massive inflation, European and American central banks have raised their key rates during 2022, making access to funding more difficult, so liquidity in the market is much less abundant. In contrast to the previous year, to prevent the effects of the pandemic, unlimited liquidity entered the financial markets.
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2023, the year of change?
It seems more complicated than that. According to Peter Brandt, CEO of the trading company Factor LLC, Bitcoin has entered a consolidation phase, of a lateral nature, and even if there is a short-term rise in BTC, he may see this lateralization then, with terminals located between $17,000 and $23,000.
For Brandt, the years after 2023 will be similar, and the possibility is there receive other support for $13,000, but in general, these years will remain rather boring, without spectacular rises or falls. However, the trader does not close the door for further significant increases after a period of two or three years. This, for him, shows the need for the market to consolidate its current area in a sustainable way.
A little more hope now, according to the analysts at Changelly. According to them, this year 2023 will also see a sideways consolidation of BTC, which we are it is called a “range”, but with more positive boundaries than Peter Brandt’s.
In fact, they defend a vision according to which this range will be established between $26,366 and $31,479. We note that this ceiling represents an evolution of almost 100% at current prices. If Changelly’s vision is true, that’s good news for aggressive investors, because a range of this size can be traded quite easily.
As for social networks, these also go there in their analysis. This is the case of Rekt Capital, an anonymous Twitter analyst, who has made a small reputation for predicting the movements of Bitcoin in recent years, with fairly reliable accuracy. The analyst announced to his 330k followers that the decline was not over. For him, by breaking the bottom of the triangle in which he was emerging before the explosion of the FTX affair, the BTC has created a significant new resistance, which should repress his efforts in the coming months, and drive him. negative towards $13,000.
$BTC: We saw a huge rally in 2019 after the bottom of the bear market; from 3k->14k
I personally think we will see another bear market rally in 2023.
Will it go as high as 2019 % wise? IMO not close.
—Altcoin Sherpa (@AltcoinSherpa) December 26, 2022
Altcoin Sherpa, a fellow Twitter analyst, does not share an opinion. As for the latter, in 2019, the price of BTC exploded right after hitting the bottom of the market. It takes like that the same vision for the future, even if it does not rule out a continuation of the decline before the long-awaited rebound.
Greater short-term visibility
Recent movements make BTC’s short-term setup more readable. Its course seems to evolve between boundaries established from From 15,717 To $18,392. Therefore, a break of one boundary or the other would establish the trend for the coming weeks. Unfortunately, BTC seems to find less support than resistance at these levels, creating more favorable momentum on the downside.
On the other hand, many traders seem to be expecting, on the BTC daily chart, the the next MACD crossover signal to take up a short position. We can therefore see that the path “to the moon” for Bitcoin is not closed, but the a lot of confusion lately it does not allow it to be borrowed in the short term.
The king of cryptocurrencies is probably in danger again with alternating ups and downs a while, before its original trend was reversed. It is still to be decided when exactly the change will happen!
In the case of Ethereum, the foundation of the crypto has been strengthened thanks to The Merge, but analysts are pessimistic about the price of the asset in the coming weeks.