Bitcoin is approaching the end of 2022 at levels not seen in over two years — what do traders think will happen next?
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BTC price reeling from USD strength
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Currently down 15% in Q4 and over 60% year-to-date, BTC/USD has few bullish allies as 2023 looms.
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Struggling to recover from the ongoing FTX scandal and associated fallout, the largest cryptocurrency giving back all the gains seen since late 2020 is indicative of the crypto market as a whole.
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Risk assets are in a precious position themselves, as Cointelegraph reported, while eyes are also on the strength of the U.S. dollar going into the new year.
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Cointelegraph takes a look at the diverging opinions among some popular traders when it comes to what BTC price action could do in Q1, 2023.
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Crypto Tony: Short with daily range low target
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One market participant taking no chances on the last day of trading on Wall Street is Crypto Tony.
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Having warned that a trip to as low as $8,000 could be imminent for Bitcoin, on Dec. 30, a fresh chart showed just how weak price action currently is.
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On daily timeframes, BTC/USD is back below the equilibrium price (EQ) of a range in place since FTX began, this no longer holding as support.
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A failed breakout at the range high means that the most likely target is now the range low at closer to $15,500.
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“I remain short and am looking for the push down into the range low as highlighted,” Crypto Tony wrote in accompanying comments.
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BTC/USD annotated chart. Source: Crypto Tony/ Twitter
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Cred: Reclaim $19,000 zone to change trend
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For fellow trader Cred, it is also all about the range when it comes to how Bitcoin might behave in future.
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In a video update on Dec. 29, Cred identified monthly and weekly support at $14,000 and $12,000, respectively.
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“With that said, if we’re not at these levels, what can we look for? If you don’t want to get to support, you could always show me a failed breakdown from support as a bullish argument,” he said.
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An area around $18-19,000, broken through thanks to FTX in November, could thus still become a target to reclaim, leaving subsequent weeks’ price action as such a “failed breakdown.”
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On weekly timeframes, however, BTC/USD is currently trading in an insignificant zone which is “not anywhere,” Cred added.
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BTC/USD annotated chart (screenshot). Source: Cred/ Twitter
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Kaleo: Strong attraction to $22,000 in Q1
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A more optimistic take on what could happen in Q1 as a whole comes from popular Twitter account Kaleo.
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In a prediction released on Dec. 30, Kaleo showed a bottoming sequence underway on BTC/USD, with next quarter supplying a clear upside price target.
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The area around $22,000, he suggested, would act like a magnet for price, based on swing highs for the 8-hour chart stretching back several months.
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By contrast, lower lows did not feature in the outlook.
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BTC/USD annotated chart. Source: Kaleo/ Twitter
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“This is what you have to look forward to in early 2023,” Kaleo commented.
