As traders embraced the possibility that there might not be a Santa Claus bounce in 2022, asset prices on Monday continued to be impacted by last week’s Fed-inspired downturn. While other significant digital assets follow, the price of Bitcoin keeps declining.
BTC is struggling to regain bullish momentum and appears to be in danger of dropping back to its yearly lows. To stop the further decline, bulls must hold the line around roughly $16,200 to $16,500. Rekt Capital previously stated that maintaining the $17,150 level for Bitcoin will be essential. The price of Bitcoin might move toward $13,900 if it ended the month below the support level. Additionally, Bitcoin price must breach the $18K-$19K area in order for a major rally to occur.
Crypto analyst Michael van de Poppe believes that if Bitcoin breaks the $16,900 barrier, it might have a strong rally. Additionally, maintaining support around the $16.5K level for Bitcoin is crucial for the price surge to $18K.
On-chain data hints at a sell-off
A rise in volatility is predicted for the upcoming week according to data from Material Indicators. The U.S. will release information about its labor market on Thursday. If the economy of the nation remains robust, the Fed will have the backing it needs to keep raising interest rates.
According to on-chain data, people who have held bitcoin for a short period of time, namely 3-6 months, are currently dumping their holdings. A selloff by Bitcoin holders with a holding period of three to six months was what caused the Monday price decrease in BTC. Spent Output Age Bands rise for 3-6 month holders has historically been followed by significant downward fluctuations. In reality, a sudden change took place immediately before the FTX crisis.
Source: https://coinpedia.org/bitcoin/bitcoin-price-to-hit-this-level-by-end-of-2022-analyst-maps-next-levels/