- Bitcoin price is around $17,000, below 2022 lows.
- BTC only has to clear one hurdle to post a 15% gain for the last week of the year.
- This 52nd week could be the turning point for 2023.
Bitcoin (BTC) price is set to trade with the thinnest liquidity of the year as markets are expected to be mostly closed this 52nd week of the year. This presents a unique opportunity for bulls to take control of price action. With liquidity low, bulls can rally in a matter of moments and cover large parts of the price action as bears will be less resilient.
Bitcoin price set to jump higher
Bitcoin price will skyrocket as markets are in complete pause between Christmas and New Year. As thin liquidity will be the key element of market conditions that traders need to be aware of, bulls must seize this opportunity to propel the price action higher as there are no bears in sight. This means that a sharp rally could develop in this last trading week of the year.
BTC is moving away from $16,020 and is facing only one key resistance element on the upside. The 55-day simple moving average (SMA) is around $17,300. If the bulls pull themselves together and refrain from taking profits at this level, the rally could extend to $19,036 by the end of this week or just before New Year’s Eve.
BTC/USD weekly chart
The downside risk is twofold: The latest economic data from the US last week confirmed that the Fed will have to make further interest rate hikes. Markets have underestimated this element, which could further weigh on market sentiment in favor of risk aversion. Add to this the thin liquidity and the price action could drop back to $16,000.
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