Bitcoin (BTC) continues the upward momentum it gained last week. Its trend is attributed to sideways movements from bearish. With the busy news feed calendar, a few dates will be critical tomorrow and towards the new year.
Two key developments for Bitcoin to watch over the week
The US Consumer Price Index (CPI) is another big event for which market participants are preparing themselves. The report, scheduled for release on December 13, has historically triggered major fluctuations in the world’s BTC price. Therefore, Bitcoin expects to finally move up, despite the sideways movements.
In addition, the Federal Open Market Committee (FOMC) meeting will conclude the next day. During the latter, the institution will discuss possible interest rate increases. A higher-than-expected CPI pressure and a more hawkish Fed, similar to the April and August reversals, will block any upside action. Rather, another disinflationary push will signal that “many are chasing a continuation of the rally until the end of the year.”
Sam Bankman-Fried goes to court
The headaches of the FTX drama are unlikely to end anytime soon. Now, SBF, the former CEO of the bankrupt exchange, is expected to appear before a Congressional committee on December 13. It’s important to note that despite all the accusations of willful fraud and the growing chorus of people pushing for a more arduous investigation, Bankman-Fried was “invited” rather than subpoenaed. After initial reluctance, the SBF agreed to provide an “explanation” of what went wrong.
Analysts report that Bitcoin price is heading for a new low
Twitter Analyst nicknamed Profit Blue says that Bitcoin will drop 62% from its current value and reach $10,500 before 2023. “$10k before the end of the year, be careful,” the analyst tweeted. Something is definitely falling. It’s all in the charts,” he warned.
On Saturday, he said that the key resistance level between $17,300 and $17,400. “A little move up and then let everything go down,” Blue said.
Will Bitcoin test the $15,000 level once again?
According to another crypto analyst Tone Vays, Bitcoin has risen from the last bear market of $ 15,700. It is currently trading in a narrow horizontal band. The seasoned trader says that although he expects the uptrend to continue in the short term, the rise in Bitcoin will likely take it to a significant resistance level. He also predicts that this will lead to the next sales event.
Explaining a chart, Vays stated that the next breakout is more than 50% likely to be to the upside. According to Vays’ previous forecast, another drop below $15,000 is likely.
Bitcoin in capitulation since June
According to Glassnode data, since June, Bitcoin and the market as a whole have capitulated. This has occurred apart from a few rallies seen during the ongoing bear market. According to the chart below, BTC has entered the capitulation sentiment firmly as P/Los data shows a dip towards the red area last seen in 2012, 2015 and 2019.
Analyst shares his view on Bitcoin’s “real maximum pain” point
cryptocoin.com The bear market dips we covered in our analysis were accompanied by at least 60 percent of the BTC supply being exchanged at a loss. This was when the market was at its lowest point. Up to this point, the market has followed this trend almost, if not completely. However, as analyst Mags clarified in his Twitter post, that doesn’t mean the real maximum pain point is just around the corner. In addition to being a technical analyst, Mags is a trader and claims to have held Bitcoin since 2016.
What is the maximum pain point?
The “maximum pain” or “maximum pain point” is the striking price point at which the largest number of options contracts are currently active, and the price at which the asset will result in losses for most option holders after expiration. Simply put, “maximum pain” refers to when option buyers will lose the biggest money. Conversely, options sellers can benefit the most. In the words of Mags:
For the $10,000 – $14,000 majority, Max won’t be in pain because most of you are up for it! The real maximum pain is when the price moves in the $500 range for months.
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