How likely is Bitcoin price to return to $19,000 before FOMC minutes?
- Bitcoin price shows a recovery above intermediate support at $16,624.
- A resurgence of buying pressure at this barrier could trigger a quick run-up to $17,000 and higher.
- Invalidation of the bullish thesis will occur with a four-hour candlestick close below $16,211.
Bitcoin price shows a clear exhaustion of bullish trend after recovering above a stable support level. This move is likely setting up the stage for a rally for BTC bulls after a quiet end to 2022. While the big crypto could take a while to trigger this move, the Federal Open Market Committee’s (FOMC) December readout, set to be released on January 5, could serve as a tailwind to the bullish outlook.
Bitcoin price ready to make noise in 2023
Bitcoin price sawrecovery above the intermediate support level at $16,624 after a 3% climb over the last three days. This slow but steady move has now flipped the aforementioned level into a support floor. In doing so, the Relative Strength Index (RSI) has also recovered above the midpoint at 50, suggesting a resurgence of bullish momentum.
A retest of the RSI’s midpoint followed by a bounce will indicate that BTC bulls are defending this level and could hint at a rally for Bitcoin price. Therefore, investors need to consider a retest of $16,624 as a level to accumulate.
The confirmation of the bullish move will arrive after BTC flips the Point of Control (POC) at $16,800. This level is the highest traded volume level since November 5. Hence, flipping this hurdle will confirm the presence of willing buyers and could result in Bitcoin price triggering a move to $17,306, which is the midpoint of the mid-December’s 11% crash.
Beyond the midpoint, Bitcoin price could aim to retest the range high at the $18,401 hurdle. In a highly bullish case, BTC could reach for the 2022 POC at $19,237. This move would indicate a 15% upswing for the big crypto and its holders from the $16,624 support level.
BTC/USDT 4-hour chart
Supporting this move to not just $17,306 but $19,237 is IntoTheBlock’s Global In/Out of the Money (GIOM) model, which shows no resistance level up to $19,132. Here, roughly 6.45 million addresses that purchased nealy 3.3 million BTC are “Out of the Money.” Therefore, a move into this cluster of underwater investors could trigger a sell-off from investors looking to break even.
Hence, a local top could form roughly around $19,000.
On the other hand, the upside scenario for Bitcoin price will be invalidated if BTC flips the range low at $16,211 into a resistance level on the four-hour timeframe. While manipulation could trigger a quick selloff below the aforementioned level, investors need to wait for confirmation to close their long position, which will arrive if BTC produces a lower low below $16,211.
In such a case, Bitcoin price could eye the liquidity below the November 28 swing low at $15,970, and even the equal lows formed at $15,443.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
