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Thursday, December 1, 2022

Bitcoin price surges to $21.8K, but analysts warn that the move could be a fakeout

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Hope springs everlasting for a lot of crypto traders after the market noticed constructive price motion on July 7, alongside features in the conventional market. 

Daily cryptocurrency market efficiency. Source: Coin360

The inexperienced day in the markets comes amid a backdrop of increasing jobless claims in the U.S., which is a attainable sign that “the pressure on wages may have now peaked” in accordance to Harris Financial Group Managing Partner Jamie Cox. According to Cox, a continuation of this development could end in monetary circumstances that are “tight enough to allow the Fed to throttle back on the scale of rate increases.”

Data from Cointelegraph Markets Pro and TradingView shows that after trading near $20,400 for a majority of the day on July 7, the price of Bitcoin (BTC) spiked nearly 7% in the afternoon hours to hit a daily high of $21,860.

BTC/USDT 1-day chart. Source: TradingView

As the crypto faithful attempt to navigate the choppy waters of the crypto winter in search of a market bottom, here’s what several analysts are predicting could be next for Bitcoin.

The trend remains negative

Twitter user “Roman” posted the following chart noting that “Many are becoming euphoric and bullish as we have repeated similar candle patterns for the last 8 months.”

BTC/USDT 1-day chart. Source: Twitter

In Roman’s view, that is simply the newest in a collection of fakeouts that will trick a lot of merchants into believing the backside is in whereas in actuality, the development stays destructive.

Roman mentioned,

“Volume decreasing in a range is consolidation for continuation of trend. Not to mention thousands of inflows to exchanges before each top.”

A restoration above $23,000 would be bullish

Another dealer who holds the view that the development stays decidedly destructive is pseudonymous Twitter consumer Gilberto, who provided the following chart noting that Bitcoin’s price not too long ago broke out of a pennant formation.

BTC/USD 4-hour chart. Source: Twitter

Gilberto mentioned,

“Bullish above $23K, for now daily trend is still downwards.”

As for what the potential price path for Bitcoin could appear like if it continues alongside the downward development, market analyst Crypto Tony posted the following chart which outlines a “worst-case scenario” that could see BTC backside close to $12,000.

BTC/USD 1-week chart. Source: Twitter

Crypto Tony mentioned,

“I do not think we see the start of the next impulse until later next year and a new bull run peak until 2024 – 2025. I am already positioned at $22-24K and will add if we drop to $17 – 15K.”

Related: Bitcoin traders expect a ‘generational bottom,’ but BTC derivatives data disagrees

Traders watch the 200-week transferring common

When it comes to metrics that have been reliably used to assist decide market bottoms, the 200-week moving average (MA) is considered one of the hottest and extensively cited indicators that merchants use to establish good shopping for alternatives.

BTC/USD 1-week chart. Source: Twitter

With Bitcoin now again under its 200-week MA for less than the fourth time in its historical past, hypothesis has begun to mount about how lengthy it is going to take to get well again above this line and what the urge for food for buying and selling will be like as soon as it reaches there.

In response to this attainable state of affairs, unbiased market analyst Michaël van de Poppe posted the following tweet outlining what he thinks would possibly happen as soon as the 200-week MA is recovered.

The general cryptocurrency market cap now stands at $957 billion and Bitcoin’s dominance price is 43.1%.

The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Every funding and buying and selling move entails threat, you need to conduct your individual analysis when making a choice.