• Bitcoin (BTC) is trending down in line with both equities and the U.S. dollar on the final trading day of 2022.
• Analysts are expecting a burst of volatility before the yearly close, with the possibility of a bottom in the bearish BTC Candle 2’s Yearly Close.
• Popular trader and analyst Rekt Capital suggests that whatever downside wicking occurs in the following Candle 3 could be a bonus for bargain buyers.
Bitcoin (BTC) is exhibiting a lurch toward $16,000 as the final trading day of 2022 draws to a close. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD wicking down to lows of $16,337 on Bitstamp, as the pair upped the volatility in the days after Christmas. The current price action is in line with both equities and the U.S. dollar, leaving bulls with little inspiration.
Analysts are now eyeing the likelihood of a final burst of action before the yearly close, with the possibility of a bottom in the bearish BTC Candle 2’s Yearly Close. Popular trader and analyst Rekt Capital tweeted that “historically, a strong indicator of where the $BTC bottom is is when the bearish BTC Candle 2 performs its Yearly Close.” He suggests that the worst could be in by the end of the week, and whatever downside wicking occurs in the following Candle 3 could be a bonus for bargain buyers.
On lower timeframes, the picture remains unclear, with BTC/USD stuck in a narrow range still $1,000 above its multi-year lows. The situation is mirrored in the altcoin market, with Ethereum (ETH) as well as XRP both trending down in a similar fashion.
The outlook for the new year remains uncertain, although some analysts are predicting a return of volatility in the market. On-chain analysis resource Material Indicators commented that “perhaps we may see some of that long awaited BTC volatility around the Weekly/Monthly close and the start of 2023.” The sentiment echoes that of prominent trader and analyst Michaël van de Poppe, who suggested that “we’re entering a period where there will be volatility in the market,” as the year progresses.
It’s clear that the final trading day of 2022 is offering little inspiration to bulls, with Bitcoin price action trending down in line with both equities and the U.S. dollar. However, analysts continue to speculate that the new year may bring about a resurgence in volatility, as traders look to capitalize on the potential for bargain buying in the days and months ahead.