Bitcoin has met a major inflection point in its struggle to break through the $17,000 zone. And being the year's final month, analysts are out and about with predictions of where the flagship digital asset may be headed over the rest of the year and what side of the $20,000 zone it might begin the new year on.
From this inter-month perspective, however, analysts are divided., while some expect the price action of Bitcoin to push the cryptocurrency toward the $19,000 zone and maybe over it, others have even bigger doomsday predictions and have expressed far less optimism.
This is the purpose of this article. Over the next few paragraphs, we examine what is going on with BTC and try to predict where it might be headed over the next few days, weeks, and toward the start of the next year.
Bitcoin's volatility has suffered ever since the FTX crash that rocked the market in early November.
While the cryptocurrency had managed to find its footing above the $15,500 lows it registered when it crashed under the weight of the FTX saga, the cryptocurrency is now starting to struggle at around $17,000.
After falling below the $18,250 support in the wake of the FTX collapse, the cryptocurrency's price has been through very low volatility on the daily chart as it tries to climb over this zone again.
However, the ongoing test of the $17,300 zone can be taken as Bitcoin's attempt to rally to the $18,000 zone before the bulls and bears decide on whether a break above this zone happens or a bounce to the bottom happens.
This lack of volatility on the daily chart has caused a tightening on the cryptocurrency's Bollinger bands, putting the middle band (or the average price) at $16,650, the upper band (or the near-term bullish price target) at $17,400, and the lower band at $16,000.
A clear trendline can be drawn on the four-hour charts around the $16,800 zone. After Bitcoin managed to break through this zone on the last day of November, this same lack of volatility only allowed the bulls to push the cryptocurrency to the $17,300 zone before the bears caused price reversal and then a retest of this zone, where Bitcoin is now at.
4-hour chart showing the possible price movement of Bitcoin | Source: TradingView
As far as a price analysis goes, it is safe to assume that this is the moment of truth for the cryptocurrency. If the bears push the cryptocurrency price below the $16,800 zone, a retest of its previous $15,500 low is almost likely.
However, if the cryptocurrency price enters a bounce, the bulls may have all the incentive to push Bitcoin up into a retest of $19,000 and possibly $20,000.
So far, the direction of Bitcoin for the rest of the year is uncertain. It is difficult to determine where the flagship cryptocurrency may be headed, considering the lack of volatility and how the daily RSI is below the neutral zone.
However, the SLRV ribbons on the cryptocurrency are flashing a buy signal, according to data from Glassnode, after being bearish over the rest of the year.
On the other hand, the miner selling rate on Bitcoin hints at the exact opposite. The current miner selling rate is now at its third highest level of all time, asides from 2011 (Bitcoin was $2.11) and 2015 (Bitcoin was $290) selloffs.
In conclusion, Bitcoin's performance around the $16,800 zone may determine where the cryptocurrency is headed over the rest of the year.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.