At the moment, the price of Bitcoin (BTC) is showing no signs that it will actually regain the $17,000 mark before the annual close. Despite the current environment, this trader points to indicators that point to future increases.
BITCOIN PRICE: TOWARDS A TEST OF A CRUCIAL SUPPORT
The price of Bitcoin falls to $16,642 on Bitfinex today, 27 December 2022. The cryptocurrency is trading at $16,651 at the time of writing. Its price is currently recording a daily loss of 1.74%.
On a daily basis, Bitcoin's price is running into resistance formed by the Ichimoku cloud, which has fallen below $17,000 in recent days.
Bitcoin is approaching the 100-month exponential moving average at $16,506. During these bear markets, the cryptocurrency has never closed a month below this average, despite a bearish wick below this level in November.
A DOUBLE BOTTOM IN SIGHT FOR 2023?
The price of Bitcoin is thus gradually moving away from $17,000 as the monthly close approaches. Traders continue to look for indicators that would confirm that a bottom has been reached or is imminent.
For example, trader Rekt Capital shared a chart of the Bitcoin price, calculated based on the BraveNewCoin liquid index, where it shows that the cryptocurrency could achieve in 2023, a "Double Bottom Macro at/around the 200-week moving average."
Referring to the chart above, the last two times the markets have had these double bottoms macros, Bitcoin has subsequently begun a long climb, which has seen it reach a new all-time high for each cycle.
RSI IN A HISTORICALLY LOW AREA FOR BITCOIN
These double bottoms are not the only indicator that points to an upcoming trend reversal for Bitcoin. Rekt Capital also shared a chart, which shows an RSI hitting an all-time low.
The RSI has dropped below a "zone that has historically preceded exceptional returns for long-term investors". The trader points out that reversals around this area occurred in January 2015, December 2018 and March 2020.
How low will Bitcoin fall during these final days of 2022? While the deadly crossover of two moving averages and other indicators point to future declines, other traders prefer to show the extent of future post-bottom rises instead.