Bitcoin (BTC) has sustained losses across 2022 amid an extended cryptocurrency bear market that is yet to hit a bottom. At some point, Bitcoin appeared to end the year on a positive note after reacting well to the United States inflation and CPI data alongside the subsequent Federal Reserve interest rate decisions.
In this line, Bitcoin reclaimed the crucial $18,000 position, and investors hoped the minor gains will be instrumental for the asset’s possible rally moving into the new year. However, Bitcoin has failed to hold its position correcting to below $17,000.
Before the macroeconomic-infused short-term rally, Bitcoin had been weighed down by the fallout from the FTX cryptocurrency collapse.
Interestingly, with Bitcoin staring at a possible further correction, the machine learning-based algorithms at PricePredictions, which puts into consideration moving average (MA), relative strength index (RSI), moving average convergence divergence (MACD), Bollinger Bands (BB), among others is projecting Bitcoin will likely extend bearish sentiments to January 1, 2023.
According to the projection, Bitcoin will trade at $16,722 on the first day of 2023. The prediction represents a drop of about 1.5% from the asset’s price at the time of publishing.
Bitcoin price analysis
By press time, Bitcoin was trading at $16,964 with daily losses of about 4%. On the weekly chart, Bitcoin peaked at $18,320 on December 14, while the seven-day losses were slightly above 1%.
With Bitcoin failing to maintain the recent gains, Kitco News analyst Jim Wycoff has noted that despite the ongoing correction, Bitcoin bulls have managed to retain a short-term technical advantage.
“Bitcoin-U.S. dollar prices are lower in early U.S. trading Friday, on a routine downside correction late this week after hitting a five-week high Wednesday. Prices are still in an uptrend on the daily chart. Bulls still have the slight overall near-term technical advantage,” he said.
In the wake of the price correction, a summary of the Bitcoin one-day technical analysis is exhibiting bearishness, recommending ‘sell’ at 16, while moving averages are for a ‘strong sell’ at 13.
What next for Bitcoin?
At the current price, Bitcoin is facing a tussle to avoid further corrections below $17,000 after failing to sustain the gains from the positive inflation data. In this case, the focus is on the bulls to help sustain buying pressure.
Generally, fundamentals for a possible rally remain weak, with the market coming from a week of increased uncertainty led by U.S. authorities’ possible prosecution of the Binance crypto exchange. At the same time, the exchange was at the center of controversy after questions emerged regarding the state of the exchange’s reserves.
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