Crypto and chain analysts dismiss Santa rally

Bitcoin (BTC) prices rallied today after the US Dollar Index fell sharply in response to the Bank of Japan raising its upper bound on 10-year yields to 50 basis points. BTC price rebounded after hitting a low of $16,398 on Monday and extended gains on Tuesday to nearly $17,000.

The Bitcoin price is up almost 2% in the last 24 hours, with the price currently trading at $16,933. The 24-hour low and high for Bitcoin are $16,398 and $17,028. The resistance near $17,150 remains crucial for the BTC price. Bitcoin will be bullish in 2023 if BTC’s monthly close breaks above the resistance level.

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Bitcoin On-Chain Data Indicates Sales

While the bear market rally supported by the weak US dollar amid the Bank of Japan’s monetary policy changes is pushing the Bitcoin price higher, the coming rally is likely to be weak.

On-chain data indicates that short-term Bitcoin holders, especially 3-6 months, sell their Bitcoin holdings continuously. In fact, the decline in BTC price observed on Monday was due to a sell-off by 3-6 month Bitcoin holders.

Bitcoin used output (3-6 months)
Bitcoin used output (3-6 months). Source: CryptoQuant

Historically, used output age bands rise for 3-6 months followed by massive downward movements. In fact, a sharp move occurred just before the FTX crisis. Therefore, traders need to keep an eye on the used output of 3-6 month Bitcoin holders to help predict an upcoming Bitcoin price drop.

Also Read: Is $19K Still Possible or Bitcoin (BTC) To Fall Below $15K?

Cryptoanalysts’ Bitcoin Predictions

Crypto analyst Michael van de Poppe predicts that BTC could have a strong continuation if it breaks the $16,900 level. Moreover, Bitcoin holding the support level of $16.5K remains the key for the price rally towards $18K.

Rekt Capital previously suggested that the Bitcoin price holding the $17,150 level will be decisive for Bitcoin and altcoins. If Bitcoin closed the month below the support level, a move towards $13,900 could be seen. Moreover, Bitcoin has strong resistance at $18K and a strong rally is only possible if the BTC price breaks the $18K-$19K level.

Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by Disruptive Technologies, he has shared his knowledge of Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a significant period of time and currently covers all the latest updates and developments in the crypto industry.

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.

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