After recording significant gains and hitting a three-week high of more than $17,100 on November 30, the price of Bitcoin (BTC) has dipped back below the $17,000 level. However, it is finding some stability lately at approximately $16,900 after the collapse of FTX influenced the cryptocurrency market.
Given that the price changes of Bitcoin often dictate the direction of the broader crypto market, there is a great deal of interest in predicting where the flagship digital asset will trade as the month comes to a close.
For the end of the year, the crypto community over at CoinMarketCap is bullish on the future of Bitcoin. Taking into account the 19,218 votes cast by press time, BTC is estimated to trade at an average price of $19,903 on December 31, 2022.
If the community’s predictions come true, this would represent an increase of $2,963. Or +17.52% to the decentralized finance (DeFi) asset’s current price, which stood at $16,941, down 1% on the day at press time.
Bitcoin technical analysis
Meanwhile, the BTC’s technical analysis (TA) indicators for the next month are negative; the daily summary is in the ‘sell’ zone at 14, in line with the moving averages (MA), which point to ‘sell’ at 10.
At this point, the daily oscillators are still not refusing to budge from their ‘sell’ position, with 4 indicators in any direction.
Bitcoin rainbow chart
Indeed, Bitcoincenter’s rainbow price chart is among the tools used to gauge Bitcoin’s performance by highlighting the asset’s past trends alongside insights into long-term price movement. The tool is also known as the fun chart indicating the market sentiments in colored bands.
The chart’s prediction indicates that Bitcoin will likely regain a critical support level by the end of 2022, suggesting that the flagship cryptocurrency could potentially reclaim the $25,000 level, which lies in the ‘Basically a Fire Sale’ band. Notably, Bitcoin’s current price is also operating in the zone.
Furthermore, the rainbow chart trends indicate Bitcoin might have bottomed. For instance, when Bitcoin traded in the ‘Basically a Fire Sale’ zone in March 2020, the asset embarked on a historic rally that resulted in a record high of $69,000 in late 2021. Bitcoin’s latest consolidation has been marked by dropping volatility with the price stabilizing.
Should Bitcoin overcome this resistance, it could continue its move upward, which was recently cut short after the flagship decentralized finance asset dropped below the $17,000 level.
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