Bitcoin price bottoms out at $16,000? Obstacle gains

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Bitcoin price has had a slow start to 2023 as the cryptocurrency remains stalled and moves sideways around its current levels. Many experts believe that BTC has seen the worst of the recent bear cycle and may be gearing up for some profit.

As of this writing, Bitcoin price is trading at $16,700 with sideways movement in the past 24 hours and previous seven days. The low trading volume and low activity due to the holidays contributed to the current price development.

The price of BTC is moving sideways on the daily chart. Source: BTCUSDT TradingviewBitcoin Price Near Bottom, But Profits Remain Elusive

According to analyst Caleb Franzen, Bitcoin price recorded another indication of a bottom. Franzen and others searched for clues that might support a bullish thesis for BTC, and the Heikin Ashi printed a positive signal.

Heikin Ashi is a technique for visualizing price action and creating candlestick charts to measure trends in a market. Franzen claims that Bitcoin price printed its 13th consecutive monthly Heikin Ashi on Dec. 22.

The last time BTC saw a similar trend was at the end of the bear markets of 2018 and 2015. This data supports a positive outlook for Bitcoin price and hints at upside potential in the coming months. The analyst said:

Each red streak has been longer than the last and we are currently building issue #14 for January 23rd. Historically, one green monthly candle after more than 5 red monthly candles marked the end of every bear market.

BTC price registers 13th consecutive Heikin Ashi candle. Source: Caleb Franzen on Twitter

As mentioned, Franzen and other metrics indicate that Bitcoin is bottoming out at its current levels. Crypto exchange Coinbase claims that 50% of BTC investors show losses.

In previous bear cycles, this metric hitting 50% coincided with a “sold basis for a macro market bottom,” according to the Coinbase report:

These represent major inflection points for BTC’s performance, preceding subsequent periods of price appreciation, we believe this metric provides important insight into current cycle positioning.

Bitcoin price needs to clear a sell wall from $14 million to $17,000 to take a first step in this direction. Additional data from Material Indicators claims that this level is a significant short-term hurdle for the cryptocurrency.

#FireCharts shows around $14M in requested cash, locking #Bitcoin from a green weekly close. pic.twitter.com/f5kfVtOd0R

Materials Indicators (@MI_Algos) January 1, 2023

What Could Fuel Another Bitcoin Rally

As reported by NewsBTC, history is on the bear side. For the past two years and since 2015, the price of Bitcoin had been trading lower in January when it posted double-digit losses.

The start of a new year, low liquidity and trading activity contribute to this historic pattern. The elements for another red January are there, but the cryptocurrency could surprise if macro conditions improve.

The US Federal Reserve (Fed) is expected to continue with its interest rate hike program, but representatives of financial institutions have hinted at a change in monetary policy. According to trading desk QCP Capital, if the Fed rushes in and changes its approach, the price of Bitcoin will benefit.

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