Bitcoin (BTC) felt renewed volatility after trading opened on Wall Street on December 30, pushing the price further towards $16,000.
Where are you going in the new year?
According to data from Cointelegraph Markets Pro and TradingView, the price of bitcoin hit an interim low of $16,337 on Friday.
The volatility of the market-leading cryptocurrency steadily increased in the days after Christmas, which is why some experts were expecting one last big jump before the start of the new year.
“For traditional financial markets, it is the last day of the year, but the crypto market continues to operate until the end of the calendar. Perhaps we will see some long-awaited volatility at the end of the month. and early 2023,” Material Indicators analysts said. the forecasts.
Crypto trader Rekt Capital points in this regard, noting that “from a historical perspective, the year-end close of the BTC 2 bearish candle is the most reliable indicator of the bottom.”
With this, Rekt Capital is referring to Bitcoin’s four-year halving cycles, in which the second year is often the worst.
As a result, the worst could already be over by the end of the year and “any further downturn that follows in Year 3 is just a bonus as a cheap buying opportunity” .
Nevertheless, the situation remains tight in the short term, as the price of Bitcoin remains range-bound, but is still $1,000 above a key multi-year low.
However, data from Binance’s order book shows that there is little tangible support up to $16,000, while significant resistance awaits near $17,000.
As Cointelegraph reports, the forecast for the first quarter of 2023 ranges from a bounce above $20,000 to a crash below $10,000.
Make way for risky financial products?
Meanwhile, the US stock market is posting slight losses, with the S&P 500 and Nasdaq Composite each down nearly 1%.
The US dollar also could not really appreciate at the end of the year, so the US dollar index (DXY) continued its sustained downward trend.
“Make sure to keep an eye on the US Dollar Index! Another downturn could create positive momentum for us,” Caleb Franzen of Cubic Analytics tweeted about DXY’s inverse correlation to Bitcoin price. To which he adds:
“As the US Federal Reserve sticks to its tight monetary policy, risky financial products may soon get a bit of a break.”
