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Bitcoin price bottoms at $16,700? This obstacle blocks winnings

Of the Bitcoinprice got off to a slow start in 2023 as the cryptocurrency has continued to falter and move sideways around its current level. Many experts believe that BTC has seen the worst of the recent bearish cycle and could be poised for some gains.

As of this writing, bitcoin price is trading at $16,700 with sideways movement for the last 24 hours and the previous seven days. Low trading volume and activity due to the holiday contributed to the current price action.

Bitcoin price bottoms at $16,700?  This obstacle blocks winnings, Crypto Trading NewsBTC price is moving sideways on the daily chart. Source: BTCUSDT trade view

Bitcoin price is nearing a bottom but gains remain elusive

According to analyst Caleb Franzen, the Bitcoin price recorded another hint of a bottom. Franzen and others have unearthed the clues that could support a bullish thesis for BTC, and Heikin Ashi gave a positive signal.

The Heikin Ashi is a technique for visualizing price action and creating candlestick-Charts to measure trends in a market. Franzen claims that on Dec. 22, bitcoin price printed its 13th consecutive monthly Heikin Ashi.

The last time BTC saw a similar trend was at the end of the 2018 and 2015 bear markets. This data supports a positive outlook for the Bitcoin price and points to upside potential in the coming months. The analyst explained:

Each red stripe was longer than the last and we are currently building #14 for January ’23. Historically, a green monthly candle after 5+ red monthly candles has marked the end of every bear market.

Bitcoin price bottoms at $16,700?  This obstacle blocks winnings, Crypto Trading NewsBTC price records 13th consecutive Heikin Ashi candle. Source: Caleb Franzen via Twitter

As mentioned, Franzen and other metrics suggest Bitcoin is bottoming at its current levels. Crypto exchange Coinbase claims that 50% of BTC investors are losing.

In previous bear cycles, this metric hitting 50% coincided with a “sold base for a macro market bottom,” Coinbase’s report claims:

These represent key turning points in BTC performance that precede subsequent periods of price appreciation. We believe this metric provides key insights into current cycle positioning.

Bitcoin price needs to clear a $14 million sell wall at $17,000 to take a first step in this direction. Additional data from Material Indicators claims that this level represents a significant short-term hurdle for the cryptocurrency.

#FireCharts shows around $14 million in Ask liquidity and blocks #Bitcoin ahead of a green weekly candle close.

— Material Indicators (@MI_Algos) January 1, 2023

What Could Fuel a New Bitcoin Rally?

As NewsBTC reported, history is on the side of the bears. For the past two years and since 2015, bitcoin price had traded lower in January when it posted double-digit losses.

The start of a new year, low liquidity and trading activity all contribute to this historical pattern. The elements for another red January are in place, but the cryptocurrency could surprise if macro conditions turn for the better.

The US Federal Reserve (Fed) is likely to continue its rate-hike program, but officials from financial institutions have hinted at a change in monetary policy. Bitcoin price will benefit if the Fed steps in and changes its approach, according to trading desk QCP Capital.

Source: Crypto News Deutsch

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