Bitcoin (BTC) starts the week before Christmas with a moan, as a tight trading range gives BTC bulls little joy.
A weekly close just above $16,700 means that BTC/USD remains without major volatility amid a lack of overall market direction.
The reality is stark for the average hodler of Bitcoin, which is trading below where it was two years ago, and even five years ago. “FUD” is barely in short supply thanks to the fallout from FTX and concerns over Binance.
At the same time, there are signs that miners are rallying, while on-chain indicators indicate that the time is right for a classic macro price bottom.
BTC Spot Price: “Capitulation” or “Slow Grind”?
Closing the week at just under $16,750, Bitcoin escaped without further bout of volatility on December 18. Data from Cointelegraph Markets Pro and TradingView prove the point: since the FTX scandal broke in early November, Bitcoin has hardly seen any notable price movements.
Others believe that the worst is yet to come for the current cycle. Among them is popular Crypto trader and analyst Tony, who is among those targeting a potential low of around $10,000.
On a Twitter thread this weekend, Tony claimed that “Whether we capitulate or if we do it slowly remains to be seen.”
New US Data as Analysis Predicts a Fall in Risky Assets
After last week’s drama, it’s safe to say that next week will provide somewhat less pressure for Bitcoiners. as third-quarter US gross domestic product (GDP) growth is due, and is projected to turn positive after the second quarter saw a 0.9% retraction.
However, as market investor Ajay Bagga points out, too sharp a reversal in GDP would give the Federal Reserve the license to continue aggressive interest rate hikes to rein in inflation, something not welcome for assets. risk across the board, including crypto.
Binance CEO Calls Out “FUD” as Foul Play Claims Continue
Reuters, in a report that Binance publicly rejected, has meanwhile given way to a number of additional questions, including a blog post alleging suspicious activity between Binance and its US counterpart, Binance US.
Meanwhile, Zhao continues without giving time for any type of accusation, on December 17. reiterating his “FUD” perspective. Later, he retweeted the words of Ryan Selkis, founder of the Messari analysis platform, in which he stated that there was an element of “xenophobia” in the criticism of Binance.
Miners Turn Up the Competition
After its biggest decline in almost 18 months, the difficulty of the Bitcoin network will begin to increase again this week. According to BTC.com estimates, the next bi-weekly difficulty reset will see an increase of around 3.8%. This has implications for miners, who have seen considerable turmoil in the weeks since FTX sent BTC/USD tumbling as much as 25%.
Sentiment is forecast to fall to 2022 lows
Thanks to FTX and now Binance, there is a clear sense of doom hanging over social media, and price action in crypto assets still doesn’t paint a different picture. The Crypto Fear & Greed Index is performing remarkably better than expected and is still above its “extreme greed” low. At 29/100, one could even say that the index is somewhat disconnected from the mood. For Crypto Tony, however, it will be short-lived as the Index will return to this year’s lows of just 6/100 in 2023.
By Audy Castaneda
