Bitcoin (BTC) has continued its losses throughout 2022 amid an extended cryptocurrency bear market that has yet to bottom out. At one point, Bitcoin seemed to end the year on a positive note after responding well to United States inflation and CPI data, as well as subsequent Federal Reserve interest rate decisions.
The algorithm determines the price of Bitcoin for January 1, 2023!
Bitcoin has reclaimed the critical $18,000 position and investors hoped that the small gains would factor into the asset’s possible rally as we enter the new year. However, Bitcoin failed to hold its position, correcting below $17,000.
Prior to the macroeconomic-driven short-term rally, Bitcoin was under pressure from the fallout from the collapse of the FTX cryptocurrency.
Interestingly, while Bitcoin is looking at another possible correction, machine learning-based algorithms at PricePredictions consider moving average (MA), relative strength index (RSI), moving average convergence divergence (MACD), Bollinger Bands (BB). He predicts, among others, that Bitcoin will likely extend its downtrend until January 1, 2023.
According to the forecast, Bitcoin will be traded at $ 16,722 on the first day of 2023. The forecast represents a decrease of approximately 1.5% from the price of the asset at the time of publication.
Bitcoin 30-day price forecast. Source: Price Forecast
Bitcoin price analysis
At press time, Bitcoin was trading at $16,964, down about 4% daily. On the weekly chart, Bitcoin peaked at $18,320 on December 14, with seven-day losses just over 1%.
Bitcoin seven-day price chart. Source: Finbold
With Bitcoin failing to sustain its recent gains, Kitco News analyst Jim Wycoff noted that despite the ongoing correction, Bitcoin bulls have managed to maintain a short-term technical advantage.
“Bitcoin-US dollar prices fell in early US trading on Friday after hitting a five-week high on Wednesday, in a routine downward correction this weekend. Prices are still in an uptrend on the daily chart. “The bulls continue to have the short-term overall technical advantage.”
Following the price correction, a summary of Bitcoin one-day technical analysis is bearish and recommends ‘sell’ at 16, while the moving averages are at 13 for a ‘strong sell’.
What’s next for Bitcoin?
At the current price, Bitcoin is facing a struggle to avoid further corrections below $17,000 after failing to sustain gains from positive inflation data. In this case, the focus is on the bulls to help maintain the buying pressure.
Overall, the fundamentals for a possible rally remain weak as the market comes from a week of heightened uncertainty sparked by the possible prosecution of the US authorities against the Binance crypto exchange. At the same time, the stock market was at the center of the controversy after questions arose about the status of stock market reserves.
Disclaimer: The content on this site should not be considered investment advice. Investment is speculative. When investing, your capital is at risk.
