Bitcoin (BTC) ends 2022 on a bearish note. As we reported on Kriptokoin.com, the price range has corrected by more than 70% from the all-time high of around $69,000 set in November 2021. Notably, the leading cryptocurrency is still entering the new year plagued by prevailing macroeconomic factors as well as crashes from events like the FTX stock market crash. So what awaits BTC now?
The leading cryptocurrency could go down to these levels by the end of the month
Machine learning algorithms on cryptocurrency tracking website PricePrediction predict that Bitcoin will undergo further corrections to trade at $15,532 on January 31, 2023. The price prediction represents a drop of about 7% from the current price of Bitcoin. According to the 30-day forecast, Bitcoin will likely experience a consistent depreciation in the first month of 2023. In particular, the forecast takes into account different technical indicators such as Bollinger Bands (BB), moving averages (MA), moving average convergence divergence (MACD), relative strength index (RSI) and others.
Bitcoin’s price action in recent days has highlighted that both bulls and bears have failed to make a big move in either direction. Commenting on the recent price action, analyst Jim Wycoff stated that investors expect a spark in Bitcoin’s price and said:
TradersHere are 8 Altcoins Great Investors Love! are waiting for a spark to ignite the price action during a quieter holiday trading period. Neither the bulls nor the bears have a near-term technical advantage, suggesting narrower range, sideways trading in the coming days. Look for more active trading as the new year begins.
Bitcoin may see these levels by 2026
Crypto miner Stefan Ristic has suggested that Bitcoin will go through a depressed 2023. However, he pointed out that the upcoming halving event in 2024 will be a critical catalyst for the bull run in 2025. Interestingly, Aurelien Ohayon, CEO of strategy services platform XOR, suggested that Bitcoin could go on a bull run in 2023. In his analysis, the first crypto has historically had a bull run four years later, and the bear market usually lasts for about a year.
According to respected crypto analyst Vince Prince, Bitcoin could potentially reach $1.8 million by 2026 if it follows the ‘Merry Christmas Cycle’. According to the cycle, Bitcoin has reached historic highs during Christmas for the past three years and this trend has been repeated in 2022 despite the bear market.
How do whales affect Bitcoin price?
The number of Bitcoin (BTC) whale transactions costing more than $1 million has reached its lowest level since December 2020, according to data from Santiment. There is a direct correlation between the price of BTC and whale transactions totaling more than $1 million. This is because the price of BTC could potentially fall continuously due to the whales’ reluctance to accumulate or distribute it. Despite the losses on the BTC network and the decline in whale activity, short-term holders continue to sell, according to CryptoQuant analyst Phi Deltalytics.
? #Bitcoin's ranging prices have a lot to do with declining whale interest. This chart illustrates how closely $BTC and $1M+ valued whale transactions correlate. If prices continue sliding and a spike occurs, this would be a historically #bullish signal. https://t.co/nDZj3eicRD pic.twitter.com/t7GFIKNpax
— Santiment (@santimentfeed) December 28, 2022
Phi claims that an assessment of BTC’s Short-Term Output Profit Ratio reveals that these participants are choosing liquidity over holding on to assets, even if it means taking a loss. BTC Unbalanced volume (OBV) was at -2.127 million on the daily chart, indicating that more assets were sold than bought, which drove prices down. This position is supported by the fact that both BTC’s Money Flow Index (MFI) and Relative Strength Index (RSI) are currently below their neutral zones.
Technical analysis
Bitcoin prices continue to trade just above support levels that have been held for over a month. The price has been testing critical 200-day MA levels for the past few days. But each time he faces a steep rejection. Meanwhile, bearish volume continues to dominate, which is feared as BTC price retests 2022 lows.
BTC price has drastically reduced volatility. The bearish triangle is elongated thinly, marking the continuation of the bearish triangle. In the next 24-48 hours, BTC price is believed to test the upper resistance at the 200-day MA, which coincides with the resistance of the descending triangle. A successful attempt could enable the price to climb above $17,000 and eventually reach $18,000, or a rejection could create a new bearish wave for a dip below $14,000.
