As the chaos in the cryptocurrency market caused by the collapse of crypto trading platform FTX began to calm down, the price of Bitcoin (BTC) began to move in a sideways pattern, but there is still hope of recovery in the long run.
Signs for Bitcoin point to ‘light down the tunnel’!
Indeed, Bitcoin has been moving in a falling wedge since June low and to break up it needs to break beyond the one-day MA200 (moving average), which should enter the falling wedge in the first week of January. (According to TradingView analysis by well-known crypto experts on TradingShot on Dec. 21)
In addition, analysts explained that Bitcoin must climb a difficult mountain:
“Only then, after breaking this trendline that has been intact since December 31, 2021, we can expect Bitcoin to go long-term bullish. Until then, the top of the falling wedge (lower Highs trendline) poses as the next rejection point/resistance.”
Is there room for optimism?
Meanwhile, light appears at the end of the tunnel in the form of the US Dollar Index (DXY), which has fallen significantly since Sept. 26, and “Bitcoin broke it after this drop, despite having a negative correlation.”
As the experts add, after the crypto market passes the FUD (‘Fear, Uncertainty and Doubt’) caused by the falling value of the dollar, “it will rise aggressively to close the lost ground on the upside.”
Bitcoin price action analysis and forecast. Source: TradingShot/TradingView
Meanwhile, Mike McGlone, a commodity strategist at Bloomberg Intelligence, predicted that as Finbold previously reported, Bitcoin will likely see a “hot period” and continue its rally, potentially outperforming financial markets.
The optimistic forecasts come as the first cryptocurrency recorded positive results in terms of 180-day forward returns in the fourth quarter of 2022, surpassing historical performance when accounting for all datasets since its inception.
Bitcoin price analysis
At press time, Bitcoin is changing hands at $16,885, recording a modest daily gain of 0.47%.
Bitcoin 7 day price chart. Source: Finbold
With a market cap of $324.87 billion, Bitcoin remains the largest crypto asset by this indicator and, along with the second Ethereum (ETH), continues to push the entire crypto market cap upwards, as recently observed.
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