Flat, green and red – Bitcoin (BTC) price. continues to trade in the $16,500-$17,000 zone. What will be the direction of the next progressive movement for cryptocurrency? Traders and analysts look for answers in reading historical data.
A major breakout or rejection for the price of Bitcoin
Bitcoin price rises to $16,807 on Bitfinex today, January 3, 2023. The cryptocurrency is trading at 16690 dollars at the time of writing this article. Markets are currently eligible for a doji.
Markets are relatively volatile at the beginning of the year. It was in this context that trader Daan Crypto Trades shared a 4-hour price chart for Bitcoin, while noting that the cryptocurrency is “holding tight around the zone” of 16500 dollars.
He says Bitcoin is still in the $16,500-$17,000 range, while he believes “the market wants to hit those local highs” around $17,000. For the merchant, a refusal or a leave at this level “shall be decisive”.
Bitcoin at the dawn of a long bullish recovery?
While waiting for a decisive move, traders and analysts try to predict the future direction of Bitcoin, based on several years of historical data.
Crypto Titan Twitto thus shared a chart comparing the price of Bitcoin and the RSI on a weekly basis, showing the similarities between the current situation and that of early 2019. Four years ago, the RSI broke a one-year resistance and the price of Bitcoin bottomed out after suffering a major rejection.
Currently, the RSI is attacking a two-year resistance and the price of Bitcoin has also registered strong declines, after a rejection that can be compared to the one at the end of 2019. If the past scenario were to repeat itself, the price of Bitcoin will then on the verge of a strong upward recovery.
$12,000 essential before breaking resistance
Also based on historical data from several years, referring to recent fluctuations in the price of cryptocurrency, Il Capo Of Crypto trader instead continues to issue bearish forecastshowing the $17,500-$19,500 resistance zone, on a weekly Bitcoin price chart.
Il Capo Of Crypto expects a rejection at the level of the resistance zone, which would bring the price of Bitcoin back to a possible bottom in about 12 thousand dollars, before a rebound that would finally allow the cryptocurrency to retrace that $17,500-$19,500 level. This area around $12,000 corresponds to Bitcoin’s local highs in 2019 and 2020.
Bitcoin started the year with a timid upward recovery. Some traders expect a green 2023, but even if such a bullish pattern were to repeat itself, a drop in the price of Bitcoin below the 2022 lows is still possible.
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