Last week, we saw extensive bullish momentum in the crypto market.
After Bitcoin broke the $19,000 resistance zone, the entire crypto market pumped, which set all alt coins on a bullish trend.
Bitcoin gained over 0.08% in its market price this week while other major Altcoins had the same bullish increase in value.
However, Bitcoin’s price is facing resistance near the $21,500 zone. BTC could move lower if there is a clear move below the $20,880 support zone. Bitcoin seems to be facing strong resistance near the $21,450 and $21,500 levels.
Bitcoin on a one-day chart
Analyzing Bitcoin on a 1-day chart, we can see that BTC is currently in a resistance zone, which makes most traders await a breakout of that zone so they can ensure the bulls are still in control.
The price is slightly trading above $20,500 and the 100 hourly simple moving average (SMA).
There is a key bullish trend line forming with support near $20,920 on the hourly chart of the BTC/USD pair. The pair could start a downside correction below the $20,880 and $20,750 support levels.
Bitcoin’s price began to rise sharply above the $20.000 resistance level. BTC was able to climb above the $20,500 and $21,000 levels to start a major uptrend.
Finally, the price tested the $21,500 resistance zone. The price has formed a high near $21,485 and is now consolidating gains. There was a minor decline below the $21,200 level. The price declined below the 23.6% Fib retracement level of the upward wave from the $20,249 swing low to the $21,489 high.
The price of bitcoin is now trading above $20,500 and the 100 hourly simples moving average. There is also a key bullish trend line forming with support near $20,920 on the hourly chart of the BTC/USD pair.
Bitcoin on a 4 hrs chart
When we look at Bitcoin in the 4-hour timeframe, we can see that December was clearly bearish, causing the price to fall before the market began to rise.
Targeting the stop losses of short sellers in the market created more liquidity to fuel the price into bullish momentum, as traders predicted.
On the upside, immediate resistance is near the $21,250 level. The next major resistance is near the $21,500 zone, above which the price might start another steady increase. In the stated case, the price may perhaps rise toward the $22,000 level. Any more gains might send the BTC price toward the $22,500 level.
On the assumption that the bitcoin price fails to clear the $21,500 resistance, the market would slowly move toward the downside while forming a downtrend. Immediate support on the downside is near the $21.000 zone on a lower timeframe.
The next major support level is near the $20,720 level. It is near the 61.8% Fibonacci retracement level of the upward wave from the $20,249 swing low to the $21,489 high when using a Fibonacci indicator. The main support is now forming near the $20,500 level, below which the price might retest the $20,000 level. Any more
Losses might send the price to $19,000.
Bitcoin’s bullish effect on Vechain (Altcoin)
In addition, BTC’s bullish movement has had an effect on most alternative coins, making traders wonder exactly when sellers will be in control.
The price momentum of VeChain (VET) has halted over the last 24 hours after the altcoin started to trade laterally. The coin had picked up bullish momentum at
the beginning of this year, but the bears could not sustain the price above the $0.021 mark.
The technical outlook of VeChain still points towards bullishness. The altcoin was overvalued at the time of writing, which emphasizes that a price correction is on the way. A price correction also presents a short opportunity for traders. Even though the accumulation on the chart showed a drop, there was still a lot of demand for VET.
But if buyers keep losing interest, VET won’t be worth as much as it is now for long. At the moment, VeChain has secured the $0.019 price level as its current support mark. Moving the price below the mark will make VeChain come under the influence of bears again. The VET price is 92% lower than its all-time high secured in 2021. Overall, the market remains on the bulls’ side, but VET has to stay above its crucial support line to keep the bears from returning.
Crypto Analysts’ Bitcoin Predictions
There are as many predictions as there are analysts charting the future of cryptocurrency. The crypto market has been on a roller coaster in the past few years, with prices rising and falling quickly.
Even though it is volatile, there is no denying that bitcoin has grown a lot in the past few years.
Following a turbulent 2022, crypto investors are attempting to predict when the next bull run will occur.
Last week, at a crypto conference in St. Moritz, Switzerland, CNBC spoke to industry insiders who painted a picture of 2023 as a year of caution. Bitcoin is expected to trade within a range, be sensitive to the macroeconomic situation such as interest rate rises, and continue to be volatile. A new bull run is unlikely in 2023.
However, experts are looking forward to next year and beyond with optimism. In 2022, the entire cryptocurrency market lost about $1.4 trillion in value, with the industry facing liquidity issues and bankruptcies, topped off by the collapse of the exchange FTX. The contagion spread across the industry.
Meltem Demirors, chief strategy officer at CoinShares, said bitcoin is likely to be rangebound, trading at the lower end between $15,000 and $20,000 and on the upper end between $25,000 and $30,000.
She said a lot of the “forced selling” that happened in 2022 as a result of collapses in the market is now over, but there isn’t much new money coming into bitcoin.
“I don’t think there’s a lot of forced selling remaining, which is optimistic,” Demirors told CNBC Friday. “But again, I think the upside is quite limited because we also don’t see a lot of new inflows coming in.”
Conclusion
If Bitcoin’s price can’t break through the $21,500 barrier, the BTC market will slowly move down as a downtrend forms. However, if the BTC price moves lower than the support level, then a move toward $18,500 may be anticipated
Additionally, $21,500 is a key level of resistance for Bitcoin, and the only way for the crypto currency’s price to make significant headway is if it can break through the $21,500–22,500 range.