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Bitcoin takes a bullish stance but guarantees buyer interest in BTC

Disclaimer: The results of the following analysis are the sole opinion of the author and should not be taken as investment advice

  • Bitcoin is seeing hefty outflows from exchanges, suggesting an accumulation phase
  • A revisit of the month-long range lows could offer traders an opportunity

Tether dominance has slowly increased throughout 2022. This meant that as the year progressed, the stablecoin continued to capture more and more of the entire cryptosphere’s market cap. This metric’s gains since June highlighted how investors have fled holding crypto to stick with fiat.

Bitcoin itself has been in a downtrend from the $67,000 level for the past year. This downward trend was far from over.

Read Bitcoins [BTC] Price prediction 2023-2024

There has been speculation on social media that Bitcoin is nearing its bottom in the markets. Others felt that FTX’s sins could bleed the entire industry for years. In December, Bitcoin was perched precariously at $17,000, but it may be time for another move lower.

Bitcoin is showing bearish momentum with support at $15.6K on the daily chart

Source: BTC/USDT on TradingView

For the past month, BTC has traded in a range (yellow) from $15.6K to $17.7K. The midpoint was $16.6k and has served as a key level for the past month. At press time, the Relative Strength Index (RSI) is below neutral 50, while the On-Balance Volume (OBV) is showing no trend recently. Since August, OBV has been in a downtrend, showing significant selling volume.

From a technical perspective, BTC has a bullish market structure. It rallied above the previous lower high at $16.6k and retested the same as the support. However, this does not indicate that buyers may be interested.

The midpoint was a place for lower timeframe traders to bid. To have a better chance of success, risk-averse traders can wait for a move to the range lows before buying. You can also look for a sweep into the $15.2k to $15.4k range and a $15.6k clawback to trade a swing failure pattern.

Recent Bloodshed Has Investors Charging Bitcoin, Could Rally Start Soon?

Bitcoin has been trading in another range and should expect a renewed rally to $15.6k

Source: Glassnode

Glassnode data showed Bitcoin exiting exchanges as a dominant trend since November. This indicated that investors were moving their BTC out of exchanges and likely into cold storage. It may be a reaction to the FTX crash, but also an indication that buyers saw these prices as lucrative.

This data alone does not support the idea of ​​a rally. Another drop below $15.6k remained possible. However, despite all the fears in the market, Bitcoin was able to hold the $16,000 area. Derivatives traders anticipating more Bitcoin losses have scalded their hands.

Traders can stay within the above range while investors have to exercise patience. Bitcoin might be close to finding a bottom in terms of price, but it might be very far from finding a bottom in terms of time.

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