Bitcoin (BTC) failed to make any significant moves in either direction while the flagship cryptocurrency consolidated in a narrow range. Currently, both Bitcoin bears and bulls appear to be of equal strength, and the asset has no significant external triggers for a rally.
At what price level will Bitcoin close 2022?
Along this line, on Dec. 21, Kitco News analyst Jim Wycoff suggested that Bitcoin could experience prolonged sideways trading towards the end of the year.
“Trade has been flat and volatile this week. “Neither the bulls nor the bears have a short-term technical advantage, suggesting that the sideways trading action will continue towards the end of the year as long as the market blocks any major fundamental shocks,” Wycoff said.
Bitcoin candlestick chart. Source: TradingView
Overall, Bitcoin is being suppressed by the general market correction. Notably, the bulls regained control after Bitcoin broke past the critical $18,000 level, which had acted as a key support position in the previous weeks. The rally was a reaction to positive macroeconomic development.
Bitcoin price analysis
At press time, Bitcoin was trading at $16,855 with a daily correction of about 1%, controlling a market cap of $323.77 billion.
Bitcoin one-day price chart. Source: Finbold.
In the early trading hours of December 21, Bitcoin briefly touched $17,000 as the market looked forward to the US consumer confidence report. The analyst predicts that the index will come in at 101.00 for December, above the 100.2 value last November.
At the current price, the focus is on bulls, which will help Bitcoin consolidate and possibly recover. On the flip side, failure to consolidate could spell trouble for Bitcoin bulls as the asset will line up for a possible extended correction.
What’s next for Bitcoin?
While the effects of the collapse of the FTX exchange continue to be felt, Bitcoin and the overall cryptocurrency market do not have a potential bullish trigger. It is worth noting that Bitcoin and the market are also facing uncertainty following the emergence of concerns about the reserves of the Binance crypto exchange.
While Bitcoin is trading sideways, forecasts suggest that the asset will experience a short-term rally towards the end of 2022. According to a Finbold report based on a machine learning algorithm, Bitcoin looks set to trade at $18,796.94 on December 31.
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