Bitcoin holds $17,200 after overnight congestion pushed BTC price action to one-month highs. Analysts are trying to predict what’s next for the leading crypto.
Analysts predict continuation for Bitcoin
cryptocoin.comAs you follow, Bitcoin cooled down once again after reaching $ 17,300. BTC started off by taking liquidity at the December 8 Wall Street opening. This snowball pushed BTC to one-month highs from Dec. For those already betting on the upswing, the move came as little surprise. “The transition to $18,000 – $19,000 continues in BTC,” summarizes popular analyst Credible Crypto. The analyst also notes that the support for the invalidation of the scenario is $ 16,000.
Some of the accompanying comments state, “The lows have cleared and it looks like Binance monkeys are emerging to support the mid-16,000.” Also, the analyst said, “Maybe once again it goes to $16.4-16.5k. Then expect a reversal and continue to the $18-19k targets,” he says.
Meanwhile, trader Cheds notes that volatility is potentially continuing as BTC tags the upper Bollinger Band on 4-hour timeframes. At the time of writing, the 4-hour candles stay near the upper band. Also, both are still expanding as a classic start to increased volatility.
Popular analyst Michaël van de Poppe expects Bitcoin to continue as long as it stays above $17,000. Also, the analyst likens the overnight move to the breakout at the end of November.
Liquidations fuel BTC price rise
Further analysis of the overnight BTC price action highlights that the liquidation of shorts has increased. According to data from Coinglass, short liquidations in BTC hit $7 million in a single hour on Dec. Altcoin short liquidations add another $11 million to the tally. “The purges have been relatively small since the crash in early November,” says analytics resource On-Chain College. However, short liquidations helped accelerate this latest move.”
BTC liquidation chart / Source: Coinglass
“A classic Bitcoin move!”
Another analyst, Daan Crypto Trades, expects the trading range to absorb a liquidity both above and below the spot. “BTC is in a very narrow range here, with tons of untouched highs and lows,” he tells his Twitter followers. In addition, the analyst makes the following statement:
I think all these levels will disappear. Also, the first move will most likely turn into a scam just to go back and get the other side. It would definitely be a classic Bitcoin move.
Is Bitcoin the “final phase” of the bear market?
Popular commentator Byzantine General is on record to announce the possible start of the darkest phase of the 2022 bear market. Referring to the futures markets, the analyst makes the following assessment:
Volume is currently in a pretty strong downtrend. Market contraction, speculators surrender. We are probably entering the final phase of the bear market. However, it is possible that this last stage may take quite a long time.
Data from Coinglass also shows that futures open interest continues to decline.
Leading crypto bottom?
Crypto analyst Jason Pizzino outlines two scenarios that could signal the end of the Bitcoin bear market. The analyst says that the two scenarios indicate that the eventual capitulation has taken place and that Bitcoin is on the way to recovery. According to the analyst, it is possible for Bitcoin to close in the range of the previous month while hitting a lower bottom on the monthly bar following the capitulation in the first scenario. “First scenario, similar price action is probably lower. However, the previous candle is close in the price range,” he says.
Pizzino says that the second scenario, signaling a possible future Bitcoin reversal, would be a strong bounce recorded after the capitulation. In this context, the analyst makes the following statement:
The second scenario involves a strong jump next month after the surrender. However, this is only possible if the capitulation closure is higher. I’d say about 50% to 60% of the bar.
Pizzino says that in previous bear markets, Bitcoin tended to trade in a range after the last capitulation. Based on this, the analyst makes the following statement:
In the case of Bitcoin, here we have multiple instances of capitulation lasting one to two months. Potentially a few more as we saw in the previous bull market. Next month, it is possible that we will return to the 2021 bull market. This was tiring before a pump. We also had the trouble here in 2018 and 2019. In 2015, we had a few months sideways before that final surrender and pumping. In other words, we experienced two different capitulation scenarios in the accumulation period of 2015. And then, finally, here we have the 2011 surrender. The market was down, we had another month to test those prices before they bounced, re-accumulated, bounced back, re-accumulated, and then pumped into that bull market.
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