Bitcoin (BTC) price was trading mostly sideways over the weekend as bulls were able to refrain bears from touching base again at $16,000. With the unofficial last week of trading starting, BTC sees tailwinds coming in from several angles as bulls are putting a floor underneath the price action. Expect to see a mild grind higher if this sentiment continues to wither throughout the week for the big cryptocurrency.

Bitcoin sees some support and tailwinds coming in from equities in the green on Monday, while the US Dollar is substantially weakening, flirting with the highs of past Friday in the EUR/USD price action. These two elements are triggering some buying in risk assets across the board. If this sentiment continues, expect BTC to grind higher toward $17,000 in the coming days.

The Moving Average Convergence Divergence (MACD) reinforced last week’s sell signal by sliding below the mean line (0.00). As long as the MACD (line in blue) stays below the signal line (in red), the path with the least resistance will be to the downside.

A daily close below support at $16,000 might leave Bitcoin price in danger of plummeting to $15,800. If push comes to shove, Bitcoin price could drop to $12,000, which some analysts believe is the ultimate bottom.

Risk to the downside comes with these two supportive tailwinds that could easily flip into headwinds should a selloff occur. If the stock markets start to sell off, that will go hand-in-hand with a stronger US Dollar, making it a double whammy of bearish pressures BTC is facing. A dip towards $16,400 would materialise, with a big risk of follow-through towards $16,020 as a magnet pulling price action down.

Expecting Bitcoin to take a dive towards $12,500

Dec 19 2022