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Bitcoin price analysis: BTC consolidates in a tight range of $16,256 and $17,061 with a bullish bias

Bitcoin price analysis

TL;DR Breakdown

  • Bitcoin price analysis for today shows a bullish bias
  • BTC is stumbling to stay above the $16,700 previous support line
  • The immediate support level is $16,500

Bitcoin price analysis for today shows the bullish momentum has decreased and Bitcoin’s price has declined to $16,655.76 where it is trading at the moment of writing. Bitcoin’s price movement has been upward for most times of the day before a minor pullback that has been witnessed in the last 4 hours. Bitcoin is down by 0.49 percent after falling sharply from an intraday high of $16.757.17.

The total market capitalization of BTC is $320.6 billion with a 24-hour trading volume of $12.8 billion.BTC’s market saw some consolidation within a tight range of $16,256 and $17,061 over the last trading session. The coin was in an upward trend with its intraday high at $17,065.68 and the price is currently trading above the 50-day SMA at 16,074.93.

image 48
Cryptocurrencies price heatmap: Coin360

The immediate support level for BTC is $16,500 and the next major resistance lies at $17,200. The MACD of BTC is looking bullish as the 12-day EMA has crossed above the 26-day EMA and is trading above it at the time of writing. The recent pullback in the price of BTC is likely to be short-lived and it may retest its intraday high soon. Bitcoin bulls are attempting to keep their grip on the current level and if they succeed, further upward movements can be expected.

Bitcoin price action on a daily chart: BTC trades in a bullish bias trend

Bitcoin price analysis on a daily chart timeframe has been characterized by higher lows and higher highs. BTC’s price has been in an upward trend since the beginning of the month and despite a brief pullback, the coin is still trading above its 50-day SMA at $16,074.93. The MACD of Bitcoin is bullish as the 12-day EMA has crossed above the 26-day EMA and is trading above it at the time of writing.

image 46
BTC/USD daily chart, source: TradingView

The immediate resistance for BTC is $17,200 and if this level is broken, further upward price action can be expected. The RSI indicator of Bitcoin is currently at 62 which suggests that the coin has room to move up in the near term. Looking ahead, traders should keep an eye on the $17,200 resistance level and if it is broken, Bitcoin may attempt to reclaim the $19,783.21 level in the coming days.

The crypto markets also had a horrendous year, with BTC falling by over 65% from an all-time high. The fundamental analysis shows the United States dollar, which is perceived to be a safe haven, rallied nearly 9%, its best performance since 2015.

It appears that the cryptocurrency sector may have a brighter future in 2023. The U.S. Dollar Index (DXY) is currently weakening, which is usually reflected by an increase in Bitcoin value; therefore, it’s likely that some cryptocurrencies are reaching their lowest prices and will soon start to make gains again.

Many traders miss the opportunity to buy at lower prices since they try to time their purchases perfectly. Fortunately, long-term investors who believe in crypto’s potential can alleviate this issue by creating an investment portfolio or adding positions incrementally. Doing so will give them a stake in the game and won’t make them regret not buying when another bull cycle begins.

Could the U.S. Dollar Index extend its retracement, and would this be advantageous for risky assets? To uncover the answer, let us investigate the charts.

Bitcoin price analysis on a 4-hour chart: BTC falls sharply

Bitcoin price analysis on a 4-hour chart shows that BTC has dropped sharply in the last trading session after sudden profit-taking investors sparked a mini-selling action.BTC has declined from an intraday high of $17,757 to the current trading levels. The technical indicators have started painting a different picture from the daily charts.

image 47
BTC/USD 4-hour chart, source: TradingView

The Relative Strength Index indicator is pointed to the south and is currently residing at the 50 level. The RSI is painting a neutral market sentiment, with bearish biases. The MACD indicator is also bearish as the 12-day EMA has crossed below the 26-day EMA and is trading below it.

The immediate support level for BTC lies at $16,500 and if this level fails to hold, further downward action may be expected in the coming days. On the other hand, if bulls can reclaim the $17,000 level, we may see further upside action in BTC. The dots of the Parabolic SAR are well below the price candles, indicating a strong bearish bias in the short term.

Bitcoin price analysis conclusion

The overall crypto market outlook for 2023 looks positive as the U.S. Dollar Index (DXY.Bitcoin price analysis indicates BTC is likely to consolidate within $16,500 – $17,000 in the coming days and traders should wait for more clarity before initiating any fresh positions.

While waiting for Bitcoin to move further, see our Price Predictions on XDCCardano, and Curve

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Ann Mugoiri

Ann Mugoiri

Ann likes to write about crypto and blockchain technology. She has been following the development of these technologies for a few years and believes that they have the potential to disrupt many industries.She has specialized in technical analysis to help cryptocurrency traders make more informed decisions.

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