Bitcoin remains stagnant, struggles to exceed $17K


The world's largest blockchain-based digital asset Bitcoin has struggled to reach the $17,000 resistance zone despite rising above $16,800.

According to TradingView data, BTC price rose above critical resistance at $16,750 on Wednesday but did not surpass $17,000 before experiencing a slight rejection.

BTC's market capitalization is currently $324 billion, implying that BTC remains the most robust cryptocurrency by market capitalization, a report said. The 24-hour trading volume was $15 billion — less than the daily average of around $20 billion.

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BTC remains flat

Regardless of the downtrend, the BTC/USD was also up the previous day but failed to maintain its gains. The relative strength index (RSI) is currently bearish at 45.87, implying that the bears remain in control. The moving average (MA) is at $16,659 and is decreasing.

The Bitcoin historical volatility index (BVOL) implied that this is the least volatile phase in the index's history, and other stats revealed that such sideways movement is unusual.

Minor selling pressure may cause the price to fall below the bullish trades set up, forcing the price to test the 2022 declines.

Otherwise, reports suggested a bullish push could take the price above the pivotal resistance at $16,900 — and into the liquidity zone between $18,100 and $18,600.

Other altcoins rally

Overall, the altcoin market fluctuated positively on Wednesday, with most tokens gaining 1-6 percent, surprising many crypto investors.

XYO (XYO) posted an 83.4 percent gain to trade at $0.0088 and was among the top performers on Wednesday. Ethereum Classic (ETC) increased by 19.84 percent, while Synapse (SYN) soared to 19.05 percent.

According to an analyst who goes by the alias Ghoddusifar, ETH might be a stronger cryptocurrency of the future than BTC.

Ghoddusifar's analysis claimed that demand from NFTs, dApps and DeFi could make ETH more valuable. This puts BTC at risk of widespread adoption.

Despite this, ETH has evolved significantly, which could propel it into the fast lane in 2023.

The analyst did point out some of ETH's disadvantages, such as its higher transaction fees than BTC.

Arcane Research's most recent market report noted the market's stagnation. It also mentioned that while BTC and ETH have encountered "slight declines in the previous seven days," they continue to trade in a "very stable price range."

Investors, analysts bracing for future

Reports suggested that two months after the FTX collapse, traders and analysts are concerned about the next BTC/USD breakout and the direction it will take.

"While trading remains sideways and choppy overall, the bulls have gained some momentum this week."

Charles Edwards, founder and CEO of asset manager Capriole Investments.

"Bitcoin is currently trading at a major low in volatility. Generally, when Bitcoin breaks out of extremely low volatility, the ensuing trend tends to last," Charles Edwards, founder and CEO of asset manager Capriole Investments, said.

"Traders are waiting for a spark to ignite more volatile price action."

Charles Edwards, founder and CEO of asset manager Capriole Investments.

"Don't fight the trend on the next major move," Edwards asserted.

The sector is predicted to trade sideways soon, with market analyst Michal van de Poppe pointing to a prospective entry point for a long position between $16,500 and $16,600.

Meanwhile, Cointelegraph reported no shortfall of bearish BTC price predictions in effect at the start of 2023.

Several warnings have been issued to investors about what is to come, including a drop to $10,000 or even lower in Q1.

Analysts are waiting to see what happens with U.S. macroeconomic policy and its impact on risk assets to see if there is any silver lining.

More crypto altcoins may also be affected in the near future as regulators step in with numerous changes.

The upcoming regulations may have a long-term impact on the cryptocurrency market, specifically the price of BTC, causing the value to rise.

As some crypto analysts observe, if this pattern goes on a broader scale, liquidity could flow from other crypto altcoins to BTC. Even so, this transition may take a little longer than expected.