Bitcoin (BTC) Price Stuck in Rut: Here’s What Traders Can Expect This Weekend
The bankruptcy filing of crypto exchange giant FTX has created a black hole in the crypto space as the market has lost billions of dollars due to FTX crash. However, it could mark the birth of a fresh bullish start for the crypto market by Q1 of 2023 as it sets a new target to guide assets back to unexpected price levels. As macro conditions in the traditional market improve, Bitcoin tends to fade the bottom levels by skyrocketing into bullish territory.
Bitcoin Will Soon Ignore Its Consolidated Zone!
The crypto sector, which once promised society and investors decentralization and trust, has now turned out to be a joke, ending up in authoritarianism after the demise of FTX. However, Bitcoin looks set to continue its legacy and lead the market north as it aims to initiate a rally to the upside by next week.
A well-known cryptoanalyst, Matthew Dixon, CEO of Evai, tracks that Bitcoin may extend its current consolidation trend in the coming days. According to him, Bitcoin may break its current consolidated price range if it exceeds the $17K price level.
He further predicts that BTC may form an ascending triangle pattern in the price chart with two peaks between the price range of $17.6K and $17.4K. Bitcoin could project itself with a smooth run to $19.5K if it surpasses the $17.6K resistance by next week.
What lies ahead for Bitcoin?
FTX’s fall is similar to previous bearish events such as Mt Gox in 2014, and it may raise concerns about centralization and centralized exchanges. Therefore, Bitcoin has a great chance to stand out as it works in a decentralized nature, forcing users to rely on self-managed wallets instead of centralized exchanges.
Looking at the daily price chart, the Bitcoin market has reached a short-term consolidation area as the BTC price has been hovering around the $16K-$17K range from the past week. Bitcoin is currently trading at $16.5K after it declined again to $17K today.
The RSI-14 indicator shows no signs of recovery as it continues to trend in an oversold zone at the 36 level. However, the MACD line seems to be changing its mood as it starts trading parallel to the current trend without falling further below the signal line.
Bitcoin price is currently building short-term momentum that could test an immediate support level of $16,350. If BTC fails to hold the price near $16K, it could soon aim for a breakout below the 23.6% Fib retracement, plunging hard to $14 .5K.
However, an upward retracement is expected if BTC makes a bullish reversal after testing the $16,350 support level. A breakout above the Bollinger Band’s upper limit, which is close to the EMA-20 trendline at $17.9K, could trigger new price chart highs, and Bitcoin may next attempt to break its strong resistance at $20K.
