On the edge of averages – The price of Bitcoin (BTC) moves away from $17,000 and puts expectations of an eventual drop below $14,000 back on the table. For this trader, the cryptocurrency must now close this month, and therefore the year, above this key threshold, to avoid this plunge.
Bitcoin price in a bearish trajectory towards this average?
Bitcoin price drops as low as $16,543 on Bitfinex today, December 19, 2022. The cryptocurrency is trading at $16,566 at the time of writing this article. Its price is currently recording a daily loss of 1.14%.
The daily Bitcoin price chart shows that on December 16, Bitcoin had lost the 30-day exponential moving average – in orange – and the 30-period simple moving average – in blue – currently located at $16,844and which seems act as resistance since.
The price of Bitcoin is currently approaching the 100 month moving average – red line in the graph below – which is located at $16,504. During these bear markets, the cryptocurrency never ended the month below this average, despite a wick below during the month of November.
$17,150 as a key level to confirm or refute a fall below $14,000?
Can the price of Bitcoin regain the key thresholds, which would allow it to avoid a bearish continuation? Or is a drop to new lows for the year inevitable?
For trader Rekt Capital, if the cryptocurrency continues to experience rejection at the resistance line around $17,150, Bitcoin would then register a decline. about 20% drop in the next weeks. Rekt Capital highlighted that a monthly close below that $17,150” would confirm the beginning of a rupture from this level.
This $17,150 currently corresponds to this 30-day exponential moving average. In the event that this scenario of a fall of around 20% from $17,150 were to materialize, Bitcoin would then return to the $13,720i.e. at the level close to the October 2020 monthly closing priceat $13,788.
Bitcoin is not out of the woods just yet, despite last week’s bullish rebound, which saw it foray above $18,000. At this point, the bulls and the bears both have a shot at marking the end of this year.