- Bitcoin price resides near $17,000, off the lows of 2022.
- BTC only needs to take out one hurdle to book 15% gains for the last week of the year.
- This 52nd week could be the turning point for 2023.
Bitcoin (BTC) price is set to trade on the thinnest liquidity for the year as markets will be mostly closed for this 52nd week of the year. With this comes a unique chance for bulls to seize control of the price action. As liquidity is thin, bulls can rally and cover large chunks of price action in just a few moments, as bears will be less resistant.
Bitcoin price to bounce higher
Bitcoin price is set to jump as markets are on complete hiatus between Christmas and New Year. As thin liquidity will be the crucial element of market conditions that traders need to be aware of, bulls got to seize this opportunity to pump the price action higher, as there will be no bears in sight. This means a sharp rally could unfold this last trading week of the year.
BTC is moving away from $16,020 and faces just one important resistance element to the upside. The 55-day Simple Moving Average (SMA) comes to around $17,300. If bulls can keep their act together and refrain from taking profit at that level, the rally could stretch toward $19,036 by the end of this week or near New Year’s eve.
BTC/USD weekly chart
Risk to the downside comes twofold: The last economic data points out of the US the previous week confirmed that the Fed needs to do more rate hikes. Markets have underestimated this element, which could further weigh on market sentiment in favor of risk-off. Add to that the thin liquidity, and price action could tank back to $16,000.
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