Bitcoin price has had a slow start to 2023 as the cryptocurrency remains stagnant and sideways at current levels. Many experts believe that BTC has seen the worst of the recent bearish cycle and could be gearing up for some profits.
At the time of this writing, Bitcoin price is trading at $16,700 with a sideways movement in the last 24 hours and the previous seven days. Low trading volume and low activity due to the holidays contributed to today’s price action.
Bitcoin Price Nears Bottom, But Profits Remain Elusive
According to analyst Caleb Franzen, Bitcoin price registered another indication below a. Franzen and others have tracked down clues that could support the bullish thesis for BTC, and Heikin Ashi is printing positive signals.
Heikin Ashi is a technique for visualizing price action and creating candlestick charts to measure trends in the market. Franzen claimed that the price of Bitcoin printed the monthly Heikin Ashi 13th on December 22nd.
The last time BTC saw a similar trend was at the end of the bear market of 2018 and 2015. This data supports a positive outlook for the price of Bitcoin and signals bullish potential in the coming months. The analyst stated:
Each redline has lasted longer than the last & we are now building #14 for January ’23. Historically, a green monthly candle after 5+ red monthly candles has signaled the end of every bear market.
As mentioned, Franzen and other metrics point to Bitcoin being fundamental at current levels. Crypto exchange Coinbase claims that 50% of BTC investors experienced losses.
In the previous bear cycle, this metric reached 50% coinciding with the “sold base for macro market fundamentals,” a report from Coinbase stated:
This is a major inflection point for BTC’s performance, ahead of the next period of price appreciation, we believe this metric provides important insight into the current position of the cycle.
Bitcoin price needs to clear the $14 million sell wall at $17,000 to take the first step in this direction. Additional data from Material Indicators suggests that this level is a significant short-term hurdle for the cryptocurrency.
#FireCharts showing approximately $14M in asking liquidity, blockchain #Bitcoin from the green Weekly candle cover. pic.twitter.com/f5kfVtOd0R
– Material Indicator (@MI_Algos) January 1, 2023
What Could Make Bitcoin Rally Fresh?
As reported by NewsBTC, history is on the side of the bears. For the past two years and since 2015, the price of Bitcoin has fallen to the lowest level in January when it recorded a double loss.
The start of a new year, low liquidity, and trading activity contributed to this historical pattern. The elements for another red January are there, but the cryptocurrency could surprise if the macro situation gets better.
The US Federal Reserve (Fed) is likely to continue its program of interest rate increases, but representatives of financial institutions have considered changes in monetary policy. According to QCP Capital’s trading desk, if the Fed steps in quickly and changes its approach, the price of Bitcoin will benefit.