- The Bitcoin price increased beyond $17,300 during the 24 hours period ending on December 5
- BTC price predictions are all over the place following the recent price movements, but steer more towards a bearish outlook than a bullish one
- BTC is expected to drop below its multi-month support soon, according to several different Bitcoin price forecasts
On Monday, the Bitcoin price hit a three-week high of $17,392, pushing the 14-day Relative Strength Index (RSI) close to 49.33, more than double what it was a month ago, suggesting that BTC is currently in a neutral spot (not overbought or oversold).
Despite the positive move, the price of BTC remains firmly below the 200-day simple moving average (SMA) and the 50-day SMA, which is usually considered a bearish sign.
Judging by these criteria, and the broader macro outlook, did the recent bout of positive price action change technical analysis indicators enough to change Bitcoin price predictions?
Bitcoin price prediction: A predominantly bearish outlook remains
The short answer to the question from the opening paragraph is more of a ‘no’ than a ‘yes’. However, the picture is not as black and white, especially when accounting for the highly volatile nature of the crypto market, which is primarily driven by price speculation.
Looking at short-term resistance levels identified by Tradersweekly, BTC/USD is facing resistance at $17,692, a level it hasn’t managed to breach since November 9. More significant resistance is awaiting at $21,473. On the other hand of the spectrum, Bitcoin’s short-term support stands at $15,479.
Image source: TradingView
Given the highly publicized collapse of the FTX exchange and subsequent bankruptcy of BlockFi, one could easily imagine that BTC’s price would be in free fall. However, that obviously isn’t the case – in the last couple of weeks, Bitcoin has been trading in a rangebound channel between roughly $17,300 and $15,800.
According to a prominent Bitcoin analyst Willy Woo, the reason for that lies in the fact that long-term holders have been “absorbing the sells,” essentially keeping Bitcoin afloat. “If you’re wondering why BTC is holding up against so much deleveraging, it’s the long term hodlers, the Rick Astleys who aint giving up their BTC,” wrote Woo.
If you’re wondering why BTC is holding up against so much deleveraging, it’s the long term hodlers, the Rick Astleys who aint giving up their BTC, that are absorbing the sells. Buying spot and adding to their stack. pic.twitter.com/eOxmTsN0vk
— Willy Woo (@woonomic) December 4, 2022
In addition, Woo recently tweeted that now might be a good time to buy Bitcoin. According to the Bitcoin Macro Index, the currency is currently in a similar position that it was at the end of the previous bear cycles, which were so far always followed by massive bull runs.
Not a bad time for hodlers to buy TBH. pic.twitter.com/ZdyoEfKEs9
— Willy Woo (@woonomic) December 4, 2022
As is usually the case in crypto, there are many different views when it comes to what is considered “good” Bitcoin news and price forecasts.
For instance, a crypto analyst and trader with over 680,000 Twitter followers, il Capo Of Crypto, is convinced that “capitulation is a matter of time,” which is completely different from what Woo thinks.
“$BTC should reach 12ks, $ETH 600-700, altcoins should drop 40-50% and shitcoins 50%+.”
Our algorithmic BTC price projection mostly agrees with il Capo’s assessment. BTC is predicted to lose over -18% in the next 5 days and drop beneath $11,000 by early January.
Which are the most undervalued cryptos right now?
Despite the prolonged bear market we’ve been exposed to over the past couple of months, which saw the total market cap drop from nearly $3 trillion to below $900 billion, several digital currency projects still seem to offer a solid value proposition based on their underlying technicals.
Ovr (OVR) leads our algorithmically generated list of the most undervalued cryptos thanks to an RSI reading of 14, which suggests that OVR/USDT is considerably oversold. BinaryX (BNX) is another token that stands out due to its very low RSI of 18.