Machine learning algorithm sets Bitcoin price for January 1, 2023
Bitcoin (BTC) has been on a losing streak through 2022 amid an extended cryptocurrency bear market that has yet to bottom. At one point, Bitcoin looked set to end the year on a positive note after responding well to US inflation and CPI data along with the subsequent interest rate decisions by the Federal Reserve.
In this line, Bitcoin reclaimed the crucial $18,000 position, and investors hoped that the minor gains will be instrumental in the asset’s possible rally moving into the new year. However, Bitcoin has failed to hold its position below $17,000.
Before the macroeconomic-infused short-term rally, Bitcoin had been weighed down by the fallout from the FTX cryptocurrency collapse.
Interestingly, with Bitcoin staring at a possible further correction, the machine learning based algorithms on Price predictionswhich takes into account Moving Average (MA), Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Bollinger Bands (BB), among others estimates that Bitcoin is likely to extend bearish sentiments until January 1, 2023.
According to the forecast, Bitcoin will trade at $16,722 on the first day of 2023. The prediction represents a drop of around 1.5% from the asset’s price at the time of publication.
Bitcoin price analysis
At press time, Bitcoin was trading at $16,964 with daily losses of around 4%. On the weekly chart, Bitcoin peaked at $18,320 on December 14, while the seven-day loss was just over 1%.
With Bitcoin unable to sustain recent gains, News from Kitco analyst Jim Wycoff has noted that despite the ongoing correction, Bitcoin bulls have managed to retain a short-term technical advantage.
“Bitcoin-US dollar prices are lower in early US trading on Friday, on a routine downside correction late this week after hitting a five-week high on Wednesday. Prices are still in an uptrend on the daily chart. Bulls still have the small overall technical advantage in the short term,” he said.
In the wake of the price correction, a summary of Bitcoin one-day technical analysis shows bearishness, recommending “sell” at 16, while the moving average is for a “strong sell” at 13.
What next for Bitcoin?
At today’s price, Bitcoin faces a battle to avoid further corrections below $17,000 after failing to sustain gains from the positive inflation data. In this case, the focus is on the bulls to help maintain the buying pressure.
Overall, fundamentals for a possible rally remain weak, with the market coming off a week of heightened uncertainty led by the US authorities’ possible prosecution of the Binance crypto exchange. At the same time, the exchange was at the center of controversy after questions arose regarding the state of the exchange’s reserves.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
