‘Bitcoin Rainbow’ Indicator Consolidates At Lows As BTC Aims To Regain $17k
Bitcoin (BTC) looked set to regain the crucial $18,000 support level after breaching the $17,000 position, with bulls under pressure to show strength. However, the asset has since plunged below $17,000 as the crypto market selloff continues.
In particular, the virgin cryptocurrency has been consolidating in recent weeks, mainly characterized by sideways price movements as investors look for possible indicators that are likely to define the next price action.
In this line, The Bitcoin Center The rainbow price chart is one of the tools investors use to monitor the outlook for Bitcoin’s price. The tool utilizes color bands that follow a logarithmic regression and assess past performance to provide potential insight into long-term movements.
As of December 7, the Rainbow chart Bitcoin indicator had hit its lowest point below the ”Basically a Fire Sale” level, represented by the color blue. The asset has consolidated its position after being stuck in the zone for several weeks.
The charts’ ongoing consolidation indicates that Bitcoin has found a bottom, and faces the potential for a rally in the near future. On this line, as reported by Finbold, based on the two-week cross in Bitcoin’s moving average convergence divergence (MACD) that occurred recently, the cryptocurrency could be preparing for a bottom and big rally soon.
It’s worth noting that the last time Bitcoin hit that level was in March 2020 before embarking on a bull run that culminated in last year’s all-time high of nearly $69,000.
Bitcoin price analysis
As it stands, Bitcoin is changing hands at $16,804, having corrected by about 1% in the last 24 hours. The weekly chart shows BTC’s price peaking at $17,300 on December 5.
Currently, bears have more strength and sustained pressure on the $16,800 support could see Bitcoin fall further to around $16,400.
Bitcoin’s Next Price Action
In particular, Bitcoin has consolidated below $17,000 as investors continue to monitor risk-related news that is likely to affect Bitcoin.
In addition to the fallout from the collapse of the FTX crypto exchange, investors will be looking at the inflation data set for December 13, considering that part of BTC’s poor performance has been linked to the prevailing macroeconomic factors.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
