Bitcoin Price Prediction: Seven days of Crypto-Christmas underway?


Share:
  • Bitcoin price has fallen beneath the $17,000 barrier as the bears have induced a 10% downswing.
  • BTC may have close to an 80% chance of closing the month of December with positive returns.
  • A breach above $17,145 is needed to aim for higher bullish targets. 

Bitcoin price shows bearish technicals, but optimism for the end of the year Santa-rally persists. Nearly 100 years of stock market data suggest risk assets have a high chance of performing well. 

Bitcoin price nears Christmas

Bitcoin price is putting up a fight after experiencing a 10% selloff last week. On December 14, the peer-to-peer digital currency displayed optimistic signals. The bulls had climbed back to the $18,000 level, and moving averages provided cushion during turbulent times in the market. 

Within 24 hours, what had first appeared to be just another profit-taking consolidation, quickly morphed into a seller's frenzy. Bitcoin pierced through the 8-day exponential and 21-day simple moving averages and continued treading south into the mid-$16,000 zone.

Bitcoin price currently auctions at $16,933, a 4% rise from the Monday morning low at $16,256. Although the countertrend spike is a positive gesture, in the grand scheme, the BTC price could be setting up for additional selloffs in the coming days. The recently breached moving averages confirm this bias as they are set to collide while the BTC price auctions are below. 

A classical crossing of moving averages will likely entice bears to add to their positions. If the market is genuinely bearish, a breach of the Monday low at $16,256 could induce a downswing to challenge the yearly low at 15,476 for a 7% decline. If a double bottom does not form near the yearly low, then a $14,000 BTC will be imminent. 

The bearish technicals may be challenging for traders to accept, as many in the space anticipate a Santa rally. In recent days, Schroders, a global asset and wealth management firm, made the case that risk assets have nearly an 80% chance of closing in December with positive returns.

The wealth management firm collected data on US large-cap stocks since 1926 and found that December was the best-performing month. According to Schroeders, large-cap stocks have a 77.9% chance of closing December in a net positive. The firm calculates these metrics by dividing all percentage gains vs. percentage losses within a month. Investors should remember that Bitcoin has seen over a 90% correlation to the stock market this year. One could argue that the peer-to-peer digital currency will continue to mirror the stock market's price fluctuations until the end of the year.


tm.,schroeders

Bitcoin price is currently down 2% from December's opening price of $17,167. It is worth noting that Schroders identified positive returns with a minimum of 1.5% above the previous month. Thus, the Bitcoin price would need to rise by 3.5% and sustain price action near $17,550 by January 1 to align with Schroder's 100-year stock market data. The earliest signs of a Santa rally would be a bullish hurdle-and-flip of the colliding moving averages into support. The indicators are currently positioned near the monthly open at $17,150.

. tm./btrc.12.20.22

BTC/USDT 8-Hour Chart

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.

More Shiba News

LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.

More Lido DAO News

THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27.  RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.

More Rune News

Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.

More Chainlink News

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.

Read full analysis

BTC

ETH

XRP