Odds of Bitcoin ending 2023 with a red price chart
- Bitcoin’s price only moved marginally in the last 24 hours.
- Market indicators looked bearish, suggesting a price decline in the near term.
Bitcoin’s [BTC] price has somewhat taken a sideways path over the last few days as its value moved marginally. Amidst that, an analyst recently posted a new analysis highlighting the key resistance levels the king of cryptos witnessed in the recent past.
A look at Bitcoin’s sell signals
As mentioned above, AMBCrypto found that BTC’s price took a sideways path in the recent past as its value increased by only 0.7% in the last 24 hours.
At the time of writing, BTC was trading at $43,012.40 with a market capitalization of over $842 billion. While that happened, DanBTC916, an author and analyst at CryptoQuant, posted an analysis using one of the key indicators for Bitcoin.
The analysis used the Mean Spot Exchange Inflows metric. For starters, a spot exchange rate is the current price at which a person could exchange a crypto for another for delivery on the earliest possible value date.
The metric can be effectively used to identify sell signals for a crypto. The analysis also flagged quite a few sell signals on multiple dates, such as October 2022, November 2022, February 2023, and more recently, 20th and 23rd December, 2023.
Any more resistance zones ahead?
Since the aforementioned analysis talked about past sell signals, AMBCrypto planned to take a look at BTC’s liquidation levels to understand whether the king of cryptos has to witness more sell-offs in the near term.
As per our analysis, Bitcoin’s liquidation witnessed a massive surge near the $43,900 mark.
Therefore, in order to kickstart a bull rally, BTC has to go above that level. If it manages to do that, then BTC will face another possible resistance near the $45,000 mark, as evident from the fluorescent lines on the liquidation heatmap.
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To check whether BTC will be able to start a bull rally, we took a look at the coin’s daily chart. Our analysis found that BTC’s price entered a squeezed zone, suggesting a few slow-moving days ahead.
Its MACD also displayed a bearish crossover. On top of that, both BTC’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) registered downticks, hinting at a red price chart as we end 2023.