$8,000 dive or $22,000 rebound? Bitcoin traders anticipate BTC price action in Q1

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Bitcoin (BTC) is approaching the end of 2022 at levels not seen in over two years, what do traders think of what will happen next?

BTC price reeling from USD strength

Currently down 15% in the fourth quarter and over 60% year-to-date, BTC/USD has few bullish allies heading into 2023.

Struggling to recover from the ongoing FTX scandal and associated fallout, the largest cryptocurrency returning all gains seen since late 2020 is indicative of the crypto market as a whole.

Risky assets themselves hold a valuable position, as Cointelegraph reported, while eyes are also on US dollar strength as the new year dawns.

Cointelegraph examines the differing opinions of some popular traders regarding what BTC price action might do in Q1 2023.

Crypto Tony: Short with daily low target

Crypto Tony is a risk-free market player on the last day of trading on Wall Street.

After warning that a trip as low as $8,000 could be imminent for Bitcoin, on December 30, a new chart showed how weak the price action is currently.

On the daily timeframes, BTC/USD is back below the equilibrium price (EQ) of a range in place since the start of FTX, which no longer holds as support.

A failed break at the top of the range means that the most likely target now is the bottom of the range closer to $15,500.

I’m staying short and looking for the push down in the low range as highlighted, Crypto Tony wrote in the accompanying comments.

BTC/USD annotated chart. Source: Crypto Tony/TwitterCred: Recover $19,000 zone to change trend

For fellow trader Cred, it’s also about the range when it comes to how Bitcoin might behave in the future.

In a December 29 video update, Cred identified monthly and weekly support at $14,000 and $12,000, respectively.

That said, if we weren’t at these levels, what can we be looking for? If you don’t want to get into support, you can always show me a failed breakout of support as a bullish argument, he said.

An area around $18-19,000, crossed thanks to FTX in November, could therefore still become a target to be recovered, leaving the price action of the following weeks as a failed breakdown.

On weekly timeframes, however, BTC/USD is currently trading in an insignificant nowhere zone, Cred added.

BTC/USD annotated chart (screenshot). Source: Cred/ Twitter Kaleo: Strong attraction at $22,000 in Q1

A more optimistic view of what might happen in the first quarter as a whole comes from the popular Twitter account Kaleo.

Related:Bitcoin Price Would Surpass $600,000 If Hardest Asset Is Gold

In a prediction released on Dec. 30, Kaleo showed an ongoing bottoming streak on BTC/USD, with the next quarter providing a clear upside price target.

The area around $22,000, he suggested, would act as a magnet for price, based on the swing highs for the 8-hour chart going back several months.

In contrast, the lower lows were not in the outlook.

BTC/USD annotated chart. Source: Kaleo/Twitter

This is what you should expect at the start of 2023, commented Kaleo.

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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