Bitcoin price is trading at $16,700 with sideways movement in the last 24 hours, and the previous seven days.
The Bitcoin price is off to a slow start in 2023, as the cryptocurrency remains stagnant and moves sideways around its current levels.
Many experts believe that BTC has seen the worst of the recent bear cycle, and could be gearing up for some gains. Low trading volume, as well as low activity due to the holidays, contributed to the current price action.
Bitcoin Price Close to Bottoming, but Gains Still Elusive
According to analyst Caleb Franzen, the price of Bitcoin registered another indication of a bottom. Franzen and others have been tracking clues that could support a bullish thesis for BTC, and Heikin Ashi printed a positive sign.
Heikin Ashi is a technique for visualizing price action and creating Japanese candlestick charts to gauge trends in a market. Franzen claims that the Bitcoin price printed its 13th consecutive monthly Heikin Ashi on December 22.
The last time BTC saw a similar trend was at the end of the 2018 and 2015 bear markets. This data supports a positive outlook for the Bitcoin price, and points to upside potential in the coming months. The analyst stated the following:
“Each red streak has been longer than the last and we are currently building number 14 for January 23rd. Historically, a green monthly candle after more than 5 red monthly candles has marked the end of every bear market.”
As mentioned, Franzen and other metrics point to Bitcoin bottoming at its current levels. Crypto exchange Coinbase claims that 50% of BTC investors are losing.
In previous bear cycles, this metric reaching 50% coincided with a “sold base for a macro market fund,” the Coinbase report states.
According to Coinbase, “these represent important turning points for BTC performance, preceding subsequent periods of price appreciation, we believe this metric provides important insights into current cycle positioning.”
The Bitcoin price must break a sell wall of $14 million to $17,000 to take a first step in this direction. Additional data from Material Indicators states that this level is a major near-term hurdle for the cryptocurrency.
What Could Drive a New Bitcoin Rally?
As NewsBTC reported, the story is on the side of the bears. For the past two years and since 2015, the Bitcoin price had been trading lower during January, when it posted double-digit losses.
The start of a new year, low liquidity, and trading activity all contribute to this historical pattern. The elements for another red January are there, but the cryptocurrency could surprise if macroeconomic conditions improve.
The US Federal Reserve (Fed) is likely to continue its interest rate hike program, but representatives of financial institutions have hinted at a change in monetary policy. According to trading desk QCP Capital, if the Fed rushes and changes its approach, the Bitcoin price will benefit.
By Audy Castaneda
