Bitcoin (BTC) teased more volatility as Wall Street opened on Dec. 30, with BTC/USD edging ever closer to $16,000.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Will the new year bring ‘long-awaited volatility’?
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling to lows of $16,337 on Bitstamp.
The pair had gradually increased volatility in the days following Christmas as analysts eyed the likelihood of a final bout of action before the year-end.
“Last trading day of the year for TradFi, but crypto trades through Bank Holiday weekend. Maybe we’ll see some of that long-awaited BTC volatility around the week/month close and start of 2023,” ventured on-chain analytical resource Material Indicators.
Popular trader and analyst Rekt Capital noted that “when the bearish BTC candle 2 completes its year-end close, historically is a strong indicator of where the $BTC bottom is.”
Rekt Capital discussed Bitcoin’s four-year halving cycles, with the year following the halving traditionally being a year of overall losses.
The worst could happen by the end of the week, he therefore argued, “and whatever negative wicking occurs in the following candle 3 is just a bargain-buyer bonus.”
Annotated BTC/USD chart. Source: Rekt Capital/ Twitter
On shorter timeframes, the picture remained unclear as BTC/USD was stuck in a tight range and still $1,000 above its multi-year lows from Q4.
Binance order book data, uploaded by Material Indicators, showed a lack of tangible support between the spot price and $16,000, with resistance at $17,000 and above.
BTC/USD order book data (Binance). Source: Material Indicators/ Twitter
As Cointelegraph reported, forecasts for the first quarter of 2023 range from a rally above $20,000 to a fresh shock for the bulls in the form of a trip below $10,000.
Risk assets may see ‘some reprieve’
At the macro level, US stocks opened modest losses, with the S&P 500 and Nasdaq Composite Index both down nearly 1% at the time of writing.
Related: Bitcoin ‘not undervalued yet’, says research, as BTC price drifts closer to $16,000
The US dollar also seemed unable to post fresh gains in time for year-end as the US Dollar Index (DXY) continued its downtrend, hitting circling six-month lows.
“Keep an eye on the US dollar index DXY here! A breakdown could add momentum for bullish market momentum,” a hopeful Caleb Franzen, founder of Cubic Analytics, told Twitter followers Dec. 29.
“The Fed is still tightening, with balance sheet trimming likely to become a significant factor in 2023. Still, risk assets may soon be given a respite.”
US Dollar Index (DXY) 1-Day Candlestick Chart. Source: TradingView
The views, thoughts, and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.