As the year 2022 is coming to its conclusion, the cryptocurrency market is still swimming in the sea of red, having its market capitalization sapped to below $800 billion, crypto traders and investors are looking at the price action of Bitcoin (BTC) as the driving force for the market recovery.
With this in mind, crypto trading expert Michaël van de Poppe observed that Bitcoin was “still trending down,” facing harsh rejection at $16,800 and $16,600 and testing the block around $16,400. Unless it manages to sweep and reclaim this level, $16,200 could be in play, he noted on December 29.
At the same time, several technical analysis (TA) indicators have suggested that Bitcoin could be looking at coming out of its sideways trading pattern and making a ‘large upside move,’ including its historical Fibonacci levels, with the accumulation zone between $16,000 and $22,000 that could trigger this move.
What do experts say?
Indeed, the flagship decentralized finance (DeFi) token looks to be in the ‘extreme long-term hodler accumulation zone,’ based on its historical price action in 2010 and 2020, making its present price ‘a good bargain,’ as referred to by analyst Trader Tardigrade.
Meanwhile, CryptoNoob observed that BTC was “trading in the oversold zone, which is historically where the bottom forms,” and which indicates an upward movement is likely in the future, as Finbold reported.
More pain before a bullish turn?
Furthermore, the money flow index (MFI) for Bitcoin is demonstrating a comparable chart pattern to the asset’s previous two bottoms, predicting a ‘bullish turn,’ although it isn’t expected for another one to five months, according to the crypto and stock market analyst Trend Rider.
On the other hand, David Kemmerer, the CEO and co-founder of the crypto tax software platform CoinLedger, and Fraser Matthews, president of the Netcoins crypto exchange, are less bullish, believing more pain could be in sight for the maiden cryptocurrency.
Bitcoin price analysis
In the meantime, 1-week technical gauges are in the ‘sell’ zone at 15, as summarized from oscillators indicating ‘neutral’ at 9 (with both ‘sell’ and ‘buy’ at 1) and moving averages (MA) standing at ‘strong sell’ at 14 (as opposed ‘buy’ at 0 and ‘neutral’ at 1).
Machine learning algorithm at PricePredictions is slightly bearish as well, setting the price of BTC at $16,397.33 for December 31, 2022, which, if proven correct, will represent a decline of 1.23% from the price of the digital asset at the time of publication.
As things stand, Bitcoin is currently changing hands at the price of $16,601.27, which represents a decrease of 0.48% on the day, as well as 1.40% compared to the previous week, but still an increase of 0.63% on its monthly charts, as per data retrieved on December 29.
From the looks of it, Bitcoin will likely continue in the same sideways manner for the next several days and conclude the year on a similar note, but expectations are mounting for BTC price to recover as 2023 unfolds, with other machine learning algorithms looking at $16,885 for the end of 2022 and $17,257 for the middle of 2023.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
