Flat, green and red – The Bitcoin price (BTC). continue to trade in the $16,500-$17,000 area. What will be the direction of the next game-changing move for cryptocurrency? Traders and analysts look for answers in reading historical data.
A major breakout or rejection for the price of Bitcoin
Bitcoin price surges to $16,807 on Bitfinex today, January 3, 2023. The cryptocurrency is trading at $16,690 at the time of writing this article. The markets are currently entitled to one doji.
Markets are relatively non-volatile at the start of the year. It was in this context that trader Daan Crypto Trades shared a 4-hour price chart for Bitcoin, while also pointing out that the cryptocurrency is “holding strong around the zone” of $16,500.
He says Bitcoin is still in the $16,500-$17,000 range, although he believes “the market wants to hit those local highs” around $17,000. For the trader, a rejection or breakup at this level “will be decisive”.
Bitcoin at the dawn of a long bullish recovery?
While waiting for a decisive move, traders and analysts try to predict the next direction of Bitcoin, based on historical data of several years.
Crypto-twito Titan shared a chart comparing Bitcoin price and RSI on a weekly basis, indicating similarities between now and early 2019. Four years ago, the RSI broke a one-year resistance and Bitcoin price bottomed after a sharp rejection.
Actuellement, the RSI attaches a resistance on two years, and during the course of Bitcoin it has effectively registered strong baisses, after a re-jet which can be compared to cells preceding the bottom of 2019. If the scenario passed if reproduced, the price of Bitcoin will be so on the cusp of a strong bullish recovery.
The essential $12,000 before breaking through the resistance
Also based on historical data of several years, while referring to the recent fluctuations in the price of cryptocurrencies, the trader Il Capo Di Crypto instead continues to issue bearish predictionpointing to the $17,500 to $19,500 resistance zone, on a weekly Bitcoin price chart.
The Chief Of Crypto expects a break at the resistance zone level, which would bring the price of Bitcoin back to a potential minimum at the about $12,000, before a bounce that would finally allow the cryptocurrency to retrace those $17,500-$19,500 levels. This roughly $12,000 area corresponds to Bitcoin’s local highs in 2019 and 2020.
Bitcoin started the year with a timid upward recovery. Some traders are expecting a green 2023, but even if such a bullish pattern were to repeat itself, a fall in the price of Bitcoin below the 2022 lows is still possible.
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