Bitcoin on December 19: $14,000 before 2023?

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.

BTC USD in daily unit and moving averages
BTC USD in daily unit and moving averages

The price of Bitcoin is currently approaching the 100 month moving averagered 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.

Bitcoin price in monthly units and the 100-period moving average
BTC USD in monthly unit and the 100 period moving average

$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.

Bitcoin price: key thresholds
Publication of Rekt Capital – Source: Twitter

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.

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