Based on a combination of technical indicators and macroeconomic pressures, one cryptocurrency analyst predicts more troubles ahead for Bitcoin. Another analyst explains the turning point where Bitcoin will start to rally. Michaël van de Poppe also shares his short-term goals for Bitcoin price.
How far will the Bitcoin price drop?
Nicholas Merten begins by noting how Bitcoin hangs well below the 200-week moving averages (WMA) and 200-day moving averages (DMA). The first has historically been a long-standing price floor for Bitcoin. However, in 2022, it was turned from a support line to resistance for the first time. The analyst makes the following assessment:
It’s a big worrying sign that we’ve been thoroughly suspended and haven’t even come to retest these 200-day and 200-week averages. Second, the relief rallies that Bitcoin managed to collect from new lows throughout 2022 continued to weaken. This suggests that Bitcoin bulls are not ‘taking the stage’ as they once were. This probably signals the coming of a big wave of surrender.
The market order flow has also been negative every week. This means that traders continue to sell and ‘get the best price available’. Merten said, “The industry, Mt. “It’s undergoing its biggest restructuring since Gox was hacked in 2014 and 2015.”
The analyst also determines the ‘breaking point’ of Bitcoin. He suggests that the asset could experience a ‘major capitulation event’ if BTC drops below the 2022 low of $15,600. The analyst also says that Ethereum is still at ‘highly suspended levels’. Merten predicts that a break of the 200 DMA against Bitcoin could bring a ‘50% correction on the cards’.
Bitcoin’s new rally will start at this price!
cryptocoin.comAs you follow, Bitcoin price is still consolidating below $17,000. Because investors are watching the leading crypto for a possible bottom that will likely start a new rally. Observing the historical Bitcoin price trendline may provide a clue in attempts to determine Bitcoin’s next move.
Along this line, a crypto analyst nicknamed Goldenbreakout points out that after weeks of sideways trading, Bitcoin’s journey to its all-time high of around $69,000 started to gain momentum after the asset hit the $9,000 level. Analysts observed this pattern in July 2020.
Likewise, Bitcoin is currently exhibiting a sideways pattern. Therefore, the analyst says that BTC will likely form a trendline similar to the last bull run. However, he also states that it will need to correct up to $9,000. According to the analyst, Bitcoin price is currently in free fall. This will cause new volume to exit the asset before making room for investors to enter the market. In this context, Goldenbreakout makes the following statement:
Are we going to get the free falls like we did before? We are likely to enter much more bearish volume. So the new volume will enter BTC. Often times, when the Bitcoin price remains stable over the long term, the impact is huge in the later moments.
Under the assumption that the analyst’s forecast of $9,000 is a crucial foundation for Bitcoin’s recovery, investors will likely need to prepare for more pain in the coming weeks. Bitcoin tried to recover after positive macroeconomic factors. However, the leading crypto has not been able to hold on to the gains.
The level Bitcoin must hold to rise
Popular crypto analyst Michaël van de Poppe suggested in a tweet on Dec. 23 that if Bitcoin holds the $16,750 position, the asset will break through to the $16,900-$17,000 range and target $17,450.
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