Following a particularly turbulent year 2022 for the crypto market, investors are watching Bitcoin’s next moves closely.
The most important cryptocurrency shows a negative annual candle and a decline of 64% as a result of several converging factors. It is particularly possible to cite the collapse of the FTX platform and the fall of its founder, Sam Bankman-Fried, as well as various hacks that have targeted “bridges” in recent months. These events have particularly affected the general public’s confidence in the crypto sector, and on top of this is inflation that has gotten out of control which portends a recession in the near future.
This is why the month of January will be crucial for Bitcoin, its progress over the next few weeks will determine in what context the entire crypto ecosystem will evolve over the course of 2023.
Bitcoin price analysis
As of this writing, the price of Bitcoin sits at $16,592 and enjoyed a 0.53% rise on the day on Sunday, January 1 according to data from TradingView. The next resistance level at $17,000 has not been reached since mid-December, despite some approaches in the past few days, so this is an important checkpoint to watch. Additionally, the total market cap of $299.56 billion and a past 24-hour volume of $9.08 billion.
According to some analysts specializing in the crypto sector like Michaël van de Poppe, Bitcoin may be able to enjoy a new bullish rally in the near future, but the prerequisite is first to overcome the next levels of resistance located at $17,400 and $17,600. In this regard, another analyst named Jim Wyckoff points out and adds:
“Bitcoin trading remains erratic and relatively unstable. At the moment, neither the bulls nor the bears have a short-term advantage, suggesting continued price stagnation for the time being. »
However, it is important to remember that the performance of Bitcoin over the past few weeks can be considered quite solid, because even if the first cryptocurrency was affected by the fall of FTX, its price showed particularly strong resistance.
Although the crypto sector has already fallen significantly since its peak in November 2021, with an all-time high of $69,000 for Bitcoin as a reminder, the absence of fundamental valuations for crypto-assets means that we will not know where is. the low point until we have passed it.
