Bitcoin price is likely to end the year above the crucial support level of $16.5K. The crypto market witnessed sluggish price action due to limited trading activity during the holiday season. Traders expect the second-largest cryptocurrency, Ethereum to also end the year above $1,200.
In the weekly timeframe, the Bitcoin price action has been in a downward trend since the ATH in November 2021. The BTC price failed to capitalize on the descending channel breakout in October 2022 due to the collapse of the crypto exchange FTX.
Bitcoin price is currently trading at $16,553, trading sideways after recovering from a fall below the crucial support level on Friday. The 24-hour low and high are $16,408 and $16,610, respectively. Thus, the price has recovered just 1% in the past 24 hours.
The RSI is at 33. Therefore, the Bitcoin price shows weakness and should continue to move sideways in the next few weeks. The Exponential Moving Average also shows a bearish price trend in the coming weeks.
Interestingly, Bollinger Bands indicates the formation of narrow bands in the weekly timeframe. Thus, traders may keep away from trading due to decreased volatility. The end of the Squeeze may likely see Bitcoin price moving higher.
According to UTXO distribution on-chain data, the 1-3 months retail investors (green) maintain a positive sentiment, but longer timeframes like 3-5 years holders (pink) clearly show de-risking. Moreover, the short-term traders 3M-6M (orange) are still reeling from heavy losses. However, the institutional level 2Y-3Y (deep blue) shows signs of accumulation.
Bitcoin UTXO Distribution. Source: CryptoQuant
Also Read: Is Bitcoin Price Fall To $10K Inevitable In Early 2023?
Bitcoin Price Prediction 2023: Arcane Research
According to Arcane Research report, the crypto market to calm down in 2023, with declining volumes and falling volatility. This will be a year to accumulate and build exposure in Bitcoin, while keeping an eye on upcoming crypto regulations.
Bitcoin price will mostly trade in a flat range, but close 2023 at a higher price. The correlation between Bitcoin and equities will decrease due to less trading activity in crypto.
Also Read: Crypto Analysts Predict Bitcoin Price For 2023 As BTC Breaks Key Level