Share:
  • Bitcoin price spiked up in the late hours of US trading on Wednesday but closed negative for the day.
  • BTC price is currently facing the 55-day Simple Moving Average on the upside.
  • Traders are torn between two scenarios that are 180 degrees apart.

Bitcoin price action is slowly but surely trying to move north on price charts as traders try to continue and hold on to the momentum that started on Monday morning. Unfortunately, that winning streak got cut short near the US closing bell on Wednesday, although a fierce recovery in the last minutes erased most of the incurred losses but still did not prove strong enough to turn the red candle into a green one for the day. This nervous price action shows the imbalance in the price action as both buyers and sellers try to preposition for the next leg up in the last quarter of the year, which could turn very bullish, or yet again very bearish.

BTC price spins the bottle

Bitcoin price action is at risk of becoming unstable as both bears and bulls are trying to get their foot in the door and dictate the direction of the trend. Both scenarios have their advocates. On the one hand, there has been no real change in the current tail risks, which probably heralds more downside to come, especially should one of those elements escalate. On the other hand, a lot has been priced in by now, so any relief or just one tail risk fading should be enough for a substantial leg higher in Bitcoin price action.

BTC price is currently undergoing a rejection from the 55-day SMA at $20,444.54 which is still still providing a moving cap on the topside, muting any price action upwards. The risk is that price action tanks further as bears build up large chunks of short positions. This could see BTC price drop towards $19,036 or even $16,020 as geopolitical risks remain elevated with Russia, North Korea and Taiwan as elements to monitor.

BTC/USD Daily chart

BTC/USD Daily chart

The bullish camp is gaining some attention, however, because many central bank moves to tighten have already been priced in by now, and this might lead the US dollar to start taking a step back, opening up some room for BTC price to move higher. As markets have grown accustomed to the current monetary policy settings, the worst has been priced in, and equities will start to take a leading role by rallying for several days. If this scenario plays out further, BTC price could break above the 55-day SMA and rally towards $21,969 or even $23,878 for the coming weeks.


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

Charles Hoskinson and XRP community in loggerheads again, debate on Ethereum’s free pass resurfaces

Charles Hoskinson and XRP community in loggerheads again, debate on Ethereum’s free pass resurfaces

Charles Hoskinson, the founder of Cardano, engaged in a debate with the XRP community over the rumors of ConsenSys founder, Joseph Lubin, bribing the US financial regulator.

More Cardano News

Bitcoin Weekly Forecast: Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin Weekly Forecast: Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin (BTC) price has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever.

More Bitcoin News

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana ecosystem is set to experience a surge in activity from decentralized finance (DeFi) projects that offer users airdrops in the following months, according to a report from crypto market intelligence company Messari. 

More Solana News

LUNC ranks among trending tokens alongside Dollar pegged stablecoin USTC, eyes recovery

LUNC ranks among trending tokens alongside Dollar pegged stablecoin USTC, eyes recovery

Terra Classic USD and Terra Luna Classic tokens are trending among market participants after overnight price gains. USTC rallied to $0.078 local top after its 2022 collapse, garnering hope among traders. 

More Cryptocurrencies News

Analyzing potential $30k corrections ahead of BTC ETF approval

Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.

Read full analysis

BTC

ETH

XRP