The price of Bitcoin experienced a bullish momentum last week, as the price of Bitcoin increased by 3.4% over the past 14 days.
However, the price of Bitcoin might suffer a price decrease this week after being knocked down by a resistance above the $17,000 region.
At the time of writing this article, the price of Bitcoin is being traded at $17,029 as the price slightly decreased by 0.24% yesterday, after trying to break resistance above $17,400.
Bitcoin bears are starting to take control of the price as the bullish momentum in its price weakens compared to last week
BTC One day chart
Reviewing the BTC chart on a Daily timeframe signifies that the price of Bitcoin has been ranging sideways for the past 3days before it had a knife drop in its price last night.
However, crypto traders and technical analysts are unsure about the next possible move for BTC to either be bullish or bearish, due to the ongoing FUD about the insolvency of the largest crypto exchange In the world, Binance.
As traders question if binance fails which other central crypto exchange will succeed? As the only answer at the moment is NONE.
This news will impact the price of Bitcoin because there would be a large selloff the in the spot market which will cause BTC to have another price decrease due to the market sentiment.
What to Expect from BTC this week.
Looking at the 1-week timeframe of the BTC chart,
Last week candlestick printed a Doji candlestick, which indicates a bearish movement,
Due to the DOJI candlestick printed traders anticipates bearish movement as they go into the chart to look for a short position.
There’s a high probability that the crypto market would be heavily bearish this week as the new weekly candlestick opened bearishly.
BTC maintains a $17,000 support zone
Bitcoin has managed to hold its support zone since last week, in the $17,000-$16,300 region.
After the knife drop on BTC last night, The bulls were able to hold their stand at the support zone giving crypto traders a little bit of hope of a possible bullish momentum in the market.
BTC faces a major resistance
Analyzing BTC in the 4-hour timeframe, we can see BTC struggles to break its major resistance at the $18,000-$17,300 region, as the price tends to decline whenever it tests the resistance.
However, BTC needs to break this current resistance or it might lose its current support and fall to a previous day’s low at $16,000.
Price Analysis
Analyzing the 4-hrs timeframe, Bitcoin just broke out from a bullish symmetrical triangle that proved to be a downtrend channel for BTC during the month of November.
As the price of Bitcoin continues to accumulate above the triangle, we are to expect a bullish rally from bitcoin in order to break the resistance above.
Technical indicators
Over the past few days, the price of bitcoin has been rangebound between $16,678 and $17,424. This suggests that the bears are guarding the overhead resistance located at $17,622 while the bulls are buying the minor dips in price.
Tight trading ranges are typically followed by an increase in volatility; however, the direction in which a breakout will occur can be difficult to forecast.
Therefore, before placing bets in a particular direction, it is best to wait until the price breaks either above the resistance or below the support before doing so.
If the price breaks and closes above the 50-day simple moving average (which is currently at $17,911), the advantage may shift toward the buyers.
Because of this, there is a better chance of there being a rally to the downtrend line.
On the other hand, if there is a downward turn in the price and it falls below $16,678, several buyers may be forced to close their positions.
Upcoming Fundamental news on Bitcoin
The Fed central bank is to report inflation on Tuesday, and Fed Chair Jerome Powell will speak on Wednesday, with the dot-plot curve being communicated before that. As a result, the Bitcoin price is likely to experience significant volatility this week.
Important because Bitcoin’s price is expected to be supported at $16,020 as the Federal Reserve is expected to confirm a slower pace and begin planning for a plateau in 2022.
There is a possibility that the markets will opt-in for the bullish outcome, which will drive the price of bitcoin closer to $18,000 by the end of this week.
A higher inflation number in comparison to the previous one on Tuesday poses a risk to the downside, as does the Federal Reserve increasing interest rates by another 75 basis points on Wednesday.
That would set off a massive wave of demand for the US Dollar, which would cause the price of bitcoin to fall to $16,020.
Expect the level of $15,000 to be tested rather on the back of that, given that it has already been subjected to numerous tests and even a brief breach.
If we were to translate that into performance, it would mean a decrease of 12% compared to the current trading price.
Bitcoin price summary
The total value of all cryptocurrencies on the market as of December 12, 2022 was $328.33 billion, representing a change of -0.33% over the course of the previous day.
The price of Bitcoin (BTC) is currently at $17,110.41, and the trading volume for the past 24 hours was $21.57B. In the past twenty-four hours, the value of BTC has increased by 0.01%, and there are currently 19.23 million Bitcoin circulations, with a maximum supply of 21.00 million bitcoin.
BTC has the largest market capitalization. It reached a 24H high of $17,152.55 on Dec 12, 2022, and its lowest 24H price point to date was $16,869.54 on the same day. Both of these prices were recorded.
Conclusion
The year 2022 has been one of the toughest times for Bitcoin and the entire crypto market.
With lots of bearish impulses and little bullish momentum.
However, with the recent events happening crypto market, professional Technical analyst predicts that BTC is to face a more bearish move and even fall to $10k before the end of the bear market.
