Given that the bear market has already led crypto assets to lose the majority of their value in 2022, many traders and analysts are optimistic about the idea of a bullish storm on the horizon. Since the bull market’s peak over a year ago, volatility has greatly decreased, and prices of crypto assets are now calmer than they have been in a while.
The collapse of the Terra network and the bankruptcy of FTX caused two significant market crashes this year. The price of Bitcoin is still fluctuating in a range similar to that of five years ago.
However, according to technical indicators and several analysts, everything is not good in the hood. This week, Il Capo of Crypto issued a warning that the markets as a whole were not prepared for some unseen and upcoming losses.
“For now, it’s fine. Some sideways consolidation, before breaking $17K for further continuation to $17.5-17.7K,” he said.
A never-seen “death cross” between the 50-day and 200-day exponential moving averages (EMA) that is currently due was predicted by Bleeding Crypto.
Meanwhile, Daan Crypto Trades called attention to the year’s end and the likelihood that this will be Bitcoin’s third consecutive year of decline.
“The percentage loss this year is sitting right in between the other two negative years, being 2014 and 2018,” Daan Crypto said.
Will retail buying drive the BTC price up?
On-chain activity hints towards greater Bitcoin selling, despite continued accumulation by small retail traders. Analysts point out that the current trend may significantly contribute to closing the wealth distribution gap. But according to Crypto Quant statistics, this can be a reason for concern for BTC owners in the near future because it might be a risky trade.
“Larger holders selling into smaller holders is really what you want to see if you believe in a longer-term Bitcoin thesis. Bitcoin becomes more distributed on the network. It is on the hands of more investors other than in the hands of a few whales.”
Source: https://coinpedia.org/bitcoin/bitcoin-death-cross-approaching-where-btc-price-is-heading-in-the-last-week-of-2022/