Bitcoin has added 1.4% in the last 24 hours, reaching the 16.7K level. It is a new attempt to test the 50-day moving average on a general lull and an effort by the bulls to paint a more optimistic technical picture with less strength while liquidity remains depressed.
Bitcoin Technical Analysis
This tactic is already successful, as the total capitalisation exceeds 800 billion (+1.6% in 24 hours).
The current dynamic looks like an attempt to draw a line under a bearish 2022. We also note that the December lows were higher than the November lows. But to argue for a reversal, it is more prudent to wait for a renewal of the local highs rather than relying only on the waning declines.
Closing the day above the 50-day average (around 16750) might give new momentum to the upside, and consolidation above 17K might be notable news in the quiet information flow and serve as a decoy for the bulls.
At the same time, we recall that since July 2022, overcoming the 50-day average served as a trigger for selling on impressive volumes, and bitcoin soon renewed lows.
This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.
