Despite the prolonged winter on the cryptocurrency market, exacerbated by the collapse of FTX, once one of the world’s largest crypto exchanges, traders are wondering if there is still hope for Bitcoin (BTC) to have a more positive Christmas Day.
Historically, Bitcoin has recorded consistent year-on-year (YoY) growth over the previous three Christmases, but the recent technical analysis factors are indicating that the bullish trend would not sustain this Xmas.
Meanwhile, looking at the last weekly candle on Bitcoin’s weekly chart, three technical analysis (TA) indicators are particularly standing out – a gravestone doji, a shooting star, and a falling wedge pattern, as observed by crypto analyst Tolberti using the TradingView platform on December 19.
What do the patterns say?
Specifically, the gravestone doji candlestick pattern is a bearish reversal or transitional formation that can occur at the end of a downtrend, as well as in the closing stages of the uptrend, signifying indecision and price neutrality. According to the expert, more of the same could be in store for Bitcoin.
At the same time, the bearish shooting star has indicated that the flagship digital asset is at the top of an uptrend when the trend could be losing its momentum as the pattern helps end the said uptrend.
That said, the falling wedge pattern, recorded by Bitcoin since September 2022, has traditionally indicated that bulls could be preparing for a renewed push, as the price could potentially start making new lower lows, but at a corrective pace.
Having said that, the 1-week gauges for Bitcoin still seem to be in the ‘sell’ zone, as summarized by the oscillators pointing at ‘buy’ at 2 (as opposed to ‘neutral’ at 9 and ‘sell’ at 0) and moving averages (MA) suggesting a ‘strong sell’ at 13 (as opposed to both ‘neutral’ and ‘buy’ at 1).
On the other hand, Bloomberg’s senior commodity specialist Mike McGlone has predicted a “warm spell ahead” for Bitcoin, which, according to him, is poised to resume its inclination to outperform” after taking “a beating in 2022 with most others,” as he explained on December 19.
His analysis arrives as Bitcoin has failed to sustain the gains inspired by the positive Consumer Price Index (CPI) report. Indeed, although Bitcoin reclaimed the crucial $18,000 position, it has witnessed increased bearish sentiments.
Bitcoin price analysis
As things stand, Bitcoin is changing hands at the price of $16,697.34, down 0.04% over the previous 24 hours and 1.88% on the week but still up 0.24% across the past 30 days, as demonstrated on the charts retrieved on December 19.
With a market capitalization of $321.22 billion, Bitcoin has retained its position as the largest cryptocurrency by this indicator, with the nearest competitor for the spot being Ethereum (ETH), with a market cap of $144.55 billion.
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