Bitcoin price finished the year above the critical support level of $16.5k. The crypto market experienced limited trading activity during the holiday season. Therefore, it has witnessed stagnant price movements. Bitcoin price action over the broad timeframe has been bearish since the ATH in November 2021. BTC price failed to take advantage of the descending channel break in October 2022 due to the collapse of crypto exchange FTX. So, what are the expectations for 2023?
These are expected for bitcoin price
cryptocoin.com Bitcoin price is currently trading at $16,553 and is trading sideways after falling below the critical support level on Friday, data show. The RSI is at 33. Therefore, Bitcoin price is showing weakness and should continue to move sideways over the next few weeks, according to analyst Varinder Singh. The Exponential Moving Average is also showing a bearish trend in the coming weeks. Interestingly, Bollinger Bands show the formation of narrow bands on the weekly time frame. Therefore, traders may stay away from trading due to reduced volatility.
According to UTXO data, 1-3 months individual investors (green) maintain a positive sentiment. However, longer timeframes such as 3-5 year traders (pink) clearly show reduced risk. Also, short-term traders 3M-6M (orange) are still suffering heavy losses. However, the corporate level 2Y-3Y (dark blue) shows signs of accumulation.
Arcane Research’s Bitcoin prediction for 2023
According to an Arcane Research report, the crypto market will calm down in 2023 with declining volumes and falling volatility. This will be an important year for saving in Bitcoin as we follow the upcoming crypto regulations. Bitcoin price will mostly trade in a flat range. But it will close 2023 at a higher price. The correlation between bitcoin and stocks will decrease due to less trading activity in crypto.
Michael van de Poppe expects these levels for Bitcoin price
On the other hand, analyst Michael van de Poppe has released a new video that he says predicts another potential Bitcoin crash. He started the video by looking at the price segment of the leading cryptocurrency, which continues to trend bearish. But Michael highlights a green Chicago PMI number on the charts just before the end of the year. A green number entered the price section for the first time since May 2022.
The analyst shares that according to Bitcoin’s economic health, anything above 50 is positive and anything below 50 is negative. Currently, Bitcoin is still below 50 at 44.9%, an increase from 37.2% last month. This shows that the recession rumors are still affecting the market. Bitcoin is experiencing a lower peak after failing to form a higher peak due to the collapse of crypto exchange FTX.
Analyzing the weekly time frame, Michael adds that the weekly pattern is similar to the daily ones. He also says that when Bitcoin tries to move up, resistance is clear at $17,349 and $17.681. Additionally, the chart shows downside support levels at $16,382 and $15.847. However, the 1-hour time frame indicates that Bitcoin was in a bearish trend that bounced off $16,600 but was rejected sharply at the $16,700 resistance. It finally shows rejection at $16,500. The analyst emphasizes that the crypto must surpass $16,500.
Rekt Capital draws attention to BE formation
Finally, the “Bearish Engulfing” (BE) candle has started forming on Bitcoin’s annual chart, according to analyst named Rekt Capital on Twitter. However, BTC needs to confirm a dump for this BE formation to be fully confirmed. To do this, it needs to close below $14,000 annually. No bearish candlestick can be established before this point.
On the other hand, the net flow and historical indicators of the crypto exchange suggest some hypotheses. According to the data, the net flow will become positive as it approaches zero. This results in fewer buyers and more sellers. At the same time as it turns positive, a local top is likely to be observed followed by increased selling pressure on the future market.