Bitcoin January 7, 2022 – The King of Cryptos Starts 2023 Silently

A breath of fresh air on the crypto king? – After painfully remembering the main points of bear run 2022 of Bitcoin (BTC), it’s time to project yourself into 2023, which could turn out to be tense. And it is clear that it will be necessary to send heavy for the bulls to overthrow the bears. Especially as hope for a change in the Fed’s monetary policy is diminishing according to final FOMC minutes.

However, to bitcoin price 2023 is off to a quiet start, despite this bad news from the US central bank. So many investors don’t know which foot to jump on. Worse yet, the king of crypto hasn’t really reacted to the recent decline in the dollar and bond rates over the past few months. But in the meantime, the FTX affair has been there.

And in a market context that forces us to navigate visually, we will analyze the latest technical analysis of BTC in the perspective that the lines move.

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Bitcoin in weekly units – Prices still below Tenkan

Although Bitcoin is set to end the first week of 2023 slightly higher, courses always remain under Tenkan. Feeling helpless that they are not bouncing enough beyond the $16,000 support.

First of all, BTC Price and Chikou Space perpetuate their respective status quo under Kumo (The cloud ofIchimoku).

But by not simultaneously breaking $16,000, they have the merit of limiting the break for a few weeks. Second, crossing the descending bear run line, after a readjustment according to recent moves, does not indicate a strong will on the part of the bulls to challenge the bears. And recently, the price of Bitcoin has not stayed above the Tenkan for a long time since mid-April 2022.

In the event that the king of crypto finally takes from $16,000, the financial media would eventually be enthusiastic in favor of a return towards $20,000. But graphically speaking, the fact that ATH 2017 is between Tenkan and Kijunwhich themselves are evolving horizontally so far, would constitute a triple resistance that could drive the bulls away. Hence, the tough task ahead of them to neutralize Bitcoin’s carry since its last ATH in November 2021.

Bitcoin in daily units – Prices near Kumo

In daily units, a dead calm reigns between the $16,000 support and the upper Kumo boundary, the Senkou Span B (SSB). So the price of Bitcoin is hovering at a adjust good tight. In the same time, he managed to timidly pass the Tenkanthen to approach the lower limit of Kumo, Senkou Span A (SSA).

Bitcoin Price Analysis in Daily Units - January 07, 2023

In the event that the king of crypto returns within the Ichimoku cloud and escapes from Kijun, we would save chances of a jump towards $20,000, which would itself be supported by the Kumo break-down. Which would coincide with a Chikou space that could do the same thing in the same way as the price of BTC. But to really ease the bulls, a breath of fresh air beyond ATH 2017 would be the ideal scenario. With the objective that the prices were set for some time above the kumo in daily units. This would force the bears to potentially take a portion of their gains.

Conversely, if Bitcoin prices return below the Tenkan, a third wave of the bear run correction could definitely re-emerge. Provided the sine qua non that $16,000 no longer holds water. In which case, an additional 25% downside potential would cause the bulls to retreat.

In summary, a bitcoin that remains frozen just above the $16,000 support but struggles to break out of the nearest resistance does not indicate a structural trend reversal. As long as we do not witness one is stick prices towards the kumo in weekly units would not provide the basis for a sustained recovery. Suffice it to say that passing $20,000 would not be a goal in itself.

To make matters worse, continued FED monetary tightening would hardly do the crypto king’s business. But the fact that this unfavorable factor is already included in the prices could not make him tremble.

Investors will have to be cautious about the so-called lull in cryptocurrencies over the past few weeks. In this sense, an extremely moderate allocation for this asset class remains preferable in a market context where we are not immune to a black swan, i.e. an event of an unpredictable nature that no one would know how to assess the impact at time T.

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