Following its rally above $18k, Bitcoin’s price action quickly turned to an impulsive decline after experiencing a significant rejection at the resistance level. The decline from the rejection was worsened by significant events.
The Bitcoin price chart between the 16th and 19th. Source: CoinMarketCap
Bitcoin’s sharp decline comes amidst the fourth straight daily decline for the S&P 500 and nervousness about the Federal Reserve’s potential rate-hike path, which has been hinted to continue throughout 2023.
According to a Bitfinex analysis, Bitcoin could suffer more decline as the year winds down given the “declines in trading volume and liquidity,” which could cause the volatility of the asset to spike.
Given the current trend and possible volatility, analysts predict that Bitcoin could face up to a 20% decline. Katie Stockton, founder of Fairlead Strategies LLC, has predicted that BTC could retest November lows, dropping “near $15,600, in the coming weeks.”
The 24-hours price chart for Bitcoin (BTC). Source: CoinMarketCap
Read our Bitcoin prediction for 2023 below:
Bitcoin: the Digital Gold – Positives for 2023
The next Bitcoin rally? Here’s what Soloway thinks:
Gareth Soloway: Regulation Is Key to Triggering Bitcoin’s Next Move Up in 2023
See original on DailyCoin
Source: Cryptocurrency - investing.com
