Bitcoin (BTC) nears late 2022 levels not seen in over two years – what do traders think will happen next?
BTC Price Wobbles on USD Strength
Currently down 15% in Q4 and down more than 60% year to date, the BTC/USD pair has few bullish allies as 2023 approaches.
Struggling to recover from the ongoing FTX scandal and the associated fallout, for the largest cryptocurrency to return all gains seen since the end of 2020 is indicative of the cryptocurrency market as a whole.
Risk assets themselves are in a lovely position, as Cointelegraph reported, while eyes are also on US dollar strength heading into the new year.
Cointelegraph takes a look at the divergent opinions among some popular traders when it comes to what BTC price action could do in Q1 2023.
Crypto Tony: Short Strategy with Low Daily Range Target
One market participant who takes no risk on the last trading day on Wall Street is Crypto Tony.
Having warned that a trip to as low as $8,000 could be imminent for Bitcoin, on Dec. 30, a fresh chart He showed how weak the price action currently is.
On daily timeframes, the BTC/USD pair is back below the equilibrium price (EQ) of a range in place since FTX started, this no longer holds as support.
A failed breakout of the range high means that the most likely target is now the range low closer to $15,500.
“I am still short and looking for the push down in the range low as has been highlighted,” Crypto Tony wrote in the accompanying comments.
Cred: Recovers the $19,000 zone to change the trend
For his colleague Cred, it’s also about range when it comes to how Bitcoin might behave in the future.
In a video update December 29, Cred identified monthly and weekly support at $14,000 and $12,000, respectively.
“That being said, if we’re not at these levels, what can we look for? If you don’t want to reach support, you can always show me a failed breakout of support as a bullish argument,” he said.
A zone around $18-19,000, traversed thanks to FTX in November, could thus still become a rallying target, leaving the price action of subsequent weeks as such a “failed breakout”.
On weekly time frames, however, the BTC/USD pair is currently trading in a negligible zone that is “nowhere,” Cred added.
Kaleo: strong attraction to USD 22,000 in the first quarter
The popular Kaleo Twitter account offers a more optimistic view of what could happen in the first quarter.
In a prediction published on December 30, Kaleo showed a bottoming sequence underway in the BTC/USD pair, with the coming quarter providing a clear upside price target.
The area around $22,000, he suggested, would act as a price magnet, based on swing highs for the 8-hour chart going back several months.
By contrast, the lower lows were not listed in the outlook.
“This is what to expect in early 2023,” Kaleo commented.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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