Bitcoin (BTC) – Downside forces are expected to dominate in the short-termPosted on Thursday, December 22 2022 at 8:43 pm GMT+0000
Bitcoin (BTC) could not escape the 20-day exponential moving average despite the impressive jump on Tuesday. The crypto-king remains under pressure as FTX pain continues, with FTX co-founder Gary Wang and former Alameda Research co-CEO Caroline Ellison both pleading guilty to federal charges in the Southern District of New York on Thursday.
However, the market volatility dried lately as revealed by the converging Keltner channels, which signifies that a strong directional move may soon unfold. Nonetheless, the oscillators are detecting some weakness ahead, as both the momentum indicator and the RSI are pointing south underneath their neutral marks. Moreover, the TSI has just crossed underneath its signal line in the negative region.
Hence, as the outlook remains gloomy, a revisit of the 16,900 – 15,400 zone, encapsulating the lower Keltner channel, is the most likely scenario at the moment. A decisive close lower will further deteriorate the technical picture and shift the spotlight straight toward the 14,300 – 14,000 region. A steeper sell-off could last until the August 2020 peak at 12,500.
Alternatively, a jump above the 20-day exponential moving average followed by a thrust beyond the 17,800 – 18,200 congested zone will motivate a more remarkable upside correction. Such a move will initially reach the 20,000 key zone, while even higher the November peak at 21,500 will step under the radar.
Overall, downside forces are expected to dominate in the coming sessions, and a daily close below 15,400 will unleash the next bearish wave. Yet, for some optimism to unveil, the price will need to rally beyond 18,200.