Bitcoin price forecast for December 31, 2022
Bitcoin (BTC) has regained the $21,000 level in November after weeks of consolidation around $20,000, characterized by sideways price movement. In particular, investors are exploring potential signals for the asset’s price floor that is likely to initiate another rally.
Actual, The Bitcoin Center rainbow price chart is among the tools used to measure Bitcoin’s performance by highlighting the asset’s past trends along with insights into long-term price movements. The tool is also known as the fun chart that indicates the market sentiments in colored bands.
The chart’s prediction indicates that Bitcoin is likely to regain a critical support level by the end of 2022, suggesting that the flagship cryptocurrency could potentially regain the $25,000 level, which is in the “Basically a Fire Sale” band. Notably, Bitcoin’s current price also works in the zone.
Furthermore, the rainbow chart trends indicate that Bitcoin may have bottomed out. For example, when Bitcoin traded in the ‘Basically a Fire Sale’ zone in March 2020, the asset started a historic rally that resulted in a record high of $69,000 in late 2021. Bitcoin’s recent consolidation has been characterized by falling volatility with the price stabilizing.
The effect of Bitcoin possible price floor
Additionally, with Bitcoin trading in the $20,000 range, a section of the market believes the asset could have found the floor. If the bottom is confirmed, investors will be able to maximize their capital efficiency to achieve the greatest possible upside with the least possible downside risk.
At the same time, using the Bitcoin rainbow chart requires caution as the bands adjust over time to better match past performance. Elsewhere, the color bands follow logarithmic regression and are not part of the scientific basis.
It is worth noting that the crypto community is expressing bearishness for Bitcoin at the end of the year. In particular, the CoinMarketCap crypto community predicts that Bitcoin will trade at an average price of $21,237 by the end of December 2022, according to data obtained by Finbold on November 5.
The price represents a drop of less than 1% from Bitcoin’s value at the time of publication. The estimate is based on votes from 12,953 community members who utilize the price estimate tool.
Bitcoin Technical Analysis
Interestingly, long-term Bitcoin technical analysis expresses mixed feelings about the asset. For example, a summary of one month of technical details highlights neutrality at seven with ‘buy’ at 10. Moving averages are for sell at nine, while oscillators are for ‘buy’ at four.
In this case, the $25,000 level is considered a critical psychological point for Bitcoin, as it places the asset in line to regain its highs towards the end of last year. Meanwhile, Bitcoin was trading at $21,250 at press time after several attempts to break the level.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
