If the bitcoin price fails to break above the $17,000 resistance, a downward correction could begin. However, a famous cryptanalyst, Kelvin Svenson, argues that a technical indicator could end the bear market for Bitcoin.
Bitcoin price started a downward correction from the $17,000 resistance. BTC found support near $16,750 and could soon attempt a bullish breakout above $17,000.
This perception is shared by Bitcoin analysts, who are following BTC price trends as the 2022 bear market drags into early 2023. The crypto market is recovering slightly from the FTX fiasco that made most crypto assets crash.
A famous cryptanalyst, Kelvin Svenson, points out that a technical indicator could end the bear market for Bitcoin. This, according to him, suggests that the BTC bulls have started to gain momentum. Furthermore, he noted that the market’s two-year downtrend could end if there is a breakout of the RSI.
Bitcoin Price Remains Supported
Bitcoin price attempted a decent upward move above the $16,800 resistance level. BTC even shot up towards the $17,000 resistance zone, but there was no clear bullish breakout.
A high was formed near $16,987, and the price began a downward correction. There was a move below the $16,800 support zone. The price dipped below the 50% Fibonacci retracement level of the up move, from the $16,615 low to $16,987 high.
However, the bitcoin price found support near the $16,750 level. The 61.8% Fib retracement level of the up move, from the $16,615 low to $16,987 high, is acting as support.
There is also a crucial uptrend line forming with support near $16,750 on the hourly chart of the BTC/USD pair. The pair is stable above $16,750 and the 100 hourly simple moving average. To the upside, immediate resistance is near the $16,900 level.
The next major resistance is near the $17,000 area. A clear move and close above the $17,000 resistance could start a strong rally in the near term. In the indicated case, the price perhaps goes towards the $17,550 level. More gains could require a move towards the $18,000 level.
Svenson’s Prediction and Bitcoin Price Outlook
Svenson cited a weekly RSI breakout towards the end of the BTC bear market in 2018. Pointing to BTC’s diagonal resistance line, he added that the market turns bullish once the RSI breaks above the resistance level.
Given the momentum that the weekly RSI is approaching, the cryptanalyst says that BTC is heading towards a significant bull run.
Bitcoin is currently trading at $16,831, but Svenson predicts that BTC can rally to $21,000 if the RSI breaks its long-term resistance. Bitcoin’s current price indicates a potential 25% increase if it hits $21,000, as Svenson predicted.
As the new year unfolds, analysts other than Svenson have projected a new outlook for BTC in 2023. For example, according to Michael van de Poppe, BTC will experience a massive price increase in the coming months, with a rally between $30,000 and $35,000.
By Audy Castaneda
