Bitcoin (BTC) starts the week before Christmas with a whimper as a tight trading range gives BTC bulls little cheer.
A weekly close just above $16,700 means BTC/USD remains without major volatility amid a lack of overall market direction.
Having seen erratic trading behavior around the latest United States macroeconomic data print, the pair has since returned to an all-too-familiar status quo. What could change it?
That is the question on every analyst’s lips as markets limp into Christmas with little to offer.
The reality is tough for the average Bitcoin hodler — BTC is trading below where it was two years and even five years ago. “FUD” is hardly in short supply thanks to FTX fallout and concerns over Binance.
At the same time, there are signs that miners are recovering, while on-chain indicators are signalling that the time is right for a classic macro price bottom.
Will Bitcoin disappoint further into the new year, or will bulls get the Santa rally they so desperately need? Cointelegraph takes a look at the factors behind upcoming BTC price action.
BTC spot price: “Capitulation” or “slow grind?”
Closing out the week at just under $16,750, Bitcoin escaped without a fresh bout of volatility on Dec. 18.
Even that which accompanied U.S. inflation data and Federal Reserve commentary was short lived, and BTC/USD has since returned to an arguably frustrating status quo.
Data from Cointelegraph Markets Pro and TradingView proves the point — since the FTX scandal erupted in early November, Bitcoin has seen hardly any noticeable price movements at all.
For market commentators, the question is thus what it will take for things to take a different turn, up or down.
Eyeing Fibonacci retracement levels on the weekly chart, analytics resource Stockmoney Lizards ventured that BTC/USD was at “key support.”
Should the area around $16,800 begin to disappear, the next one is at around $12,500.
Another chart from the weekend compared what it called “final washouts” for Bitcoin during past bear markets. This reinforced the idea that BTC/USD may be almost done “copying” previous macro bottoming structures.
Others believe that the worst is yet to come for the current cycle. Among them is popular trader and analyst Crypto Tony, who is among those targeting a low potentially around $10,000.
“So in 2023 I am expecting BTC to begin to form a…
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