Perhaps this is what the bottom looks like for bitcoin (BTC)

Bitcoin (BTC) is trading below the important $18,500 resistance area. Its breakdown will indicate a bullish January and longer-term outlook for the coin

Bitcoin (BTC) hit an all-time high of $69,000 in November 2021 and has been moving along a descending resistance line ever since.. As a result, in November 2022, the price reached a low of $15,632.

As the results of the technical analysis show, the BTC rate, despite the decline, nevertheless broke through this line in October 2022, and the next month tested its strength as a support (green icon). This price behavior is typical of bullish breakouts and could lead to a resumption of growth.. However, if bitcoin fails to launch a bull run, it could trigger a price crash towards $11,800.

Weekly RSI supports bullish scenario. It gives bullish divergence signals (green line) and its trend line remains unbroken.

In addition, the RSI indicator is in the process of a bullish breakout of the bearish divergence trendline that has been on the chart for 721 days.. It will take another bullish close of the week to confirm the breakout.

As a result, on the weekly chart, both the price and technical indicators support the start of growth.. In this case, the nearest resistance will be the area of $24,500 (average price), and the nearest Fibo level will be at $35,800.

Meanwhile, a engulfing of the Nov 22 low at $15,632 will reverse this bullish outlook and could send BTC down towards $11,000.

Source: Trading View

However, the daily timeframe paints a more blurred picture as Bitcoin trades below the $18,500 resistance area.

Between June and November 2022, this area played a support role, and then turned into resistance in December (red icon). The trend will be considered bearish until the price breaks this area.. At the same time, it is also strengthened by a descending resistance line, which emphasizes its significance.

Accordingly, only a breakout of the BTC price above these resistance levels will allow us to regard the dynamics of the coin as bullish.

Source: Trading View

The shorter 6-hour chart shows that before the market starts to rise, it may first fall.. This is indicated by the price decline of December 14, which seems to be impulsive.. Accordingly, we are probably dealing with wave A of the ABC correctional structure.

Now BTC is near the Fibo resistance level of 0.618 correction at $17,260. In the event of a rebound from this level, the price may decline and complete wave C.

On the other hand, a clean break of this level will signal the end of the correction and give reason to expect a bullish breakout.

Source: Trading View

Thus, the weekly timeframe is bullish, the daily is mixed, and the short-term is bearish.. Overall, the most likely scenario for BTC is the start of a long-term easing rally.. Absorption of the 2022 low at $15,380 will cancel this bullish outlook.

Earlier, the editors of BeInCrypto collected in one review the opinions of members of the crypto community on how BTC might behave in the near future.


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