Bitcoin price bear trend hit a pause at $16,000 earlier this month as investors reacted to the United States’ hawkish response to inflation. The Federal Open Market Committee (FOMC) hiked interest rates by 50 basis points following November’s better-than-expected Consumer Price Index (CPI) figures.

The largest cryptocurrency exchanges hands at $16,634 while holding firmly to support at $16,500. Cryptocurrency analysts forecast a bullish move above $20,000 and possibly to $23,000 if BTC lifts to trade above the 50-day Exponential Moving Average (EMA) (in red at $17,259.

However, the bearish outlook in Bitcoin price may not be ruled out, especially with the formation of a bull flag pattern on the daily time frame chart. Moreover, losses may intensify if BTC slides below its immediate support at $16,500 and the next congestion zone at $16,000, bringing $13,000 into the picture.

Bitcoin Price Contemplates a 14% Bearish Move

Bitcoin price has since November consolidated in a rising channel that may soon flip into a bear flag. This is a bullish chart pattern formed after a massive breakdown in price, like the FTX-triggered sell-off last month.

A flagpole prints on a nearly vertical panic price drop, with bulls blindsided by the bears. A channel materializes as the price bounces from support, linking higher highs and lows. During this consolidation period, traders tend to prepare their sell orders, just in case Bitcoin price breaks through the lower range level, suggesting bears have the upper hand.

Panic will grip the market as the price slides below the lower trendline. With such a move, BTC may be staring at a 14% decline to $14,209. The bear flag pattern’s breakout target often equals half the distance of the flagpole extrapolated below the breakout point.

BTC/USD daily chart

The Supertrend indicator upholds the pessimistic outlook for Bitcoin price with a long-standing sell signal – since November 8. Like a moving average, this indicator overlays the chart and incorporates the average true range (ATR) to track volatility in the market. A sell signal holds as long as BTC stays below the Supertrend.

Odds are building against Bitcoin price, considering another sell signal from the Directional Movement Index (DMI). The divergence formed by the -DI (brown line) above the +DI (blue line) cements the stubborn bearish grip on Bitcoin price.

2.44 Million Addresses Could Stifle Bitcoin Price Growth

At least 2.44 million addresses that purchased 1.37 million BTC may be why Bitcoin price cannot break its way above resistance at $17,259. According to IntoTheBlock’s IOMAP model, investors between $16,651 and $17,123 may be ready to sell as Bitcoin price climbs the ladder.

Bitcoin IOMAP chart

For Bitcoin to be safe, buyers must push past that zone – a move likely to send BTC to $20,000. On the other hand, the lack of solid support areas might open the door for Bitcoin price to fall to the bear flag pattern’s target of $14,209.

The downward force on Bitcoin price could be coming from large-volume investors, who have been on a selling spree in the last six months. On-chain data from Santiment reveals that whale and shark addresses with between 1,000 and 10,000 now hold 23.83% of the network’s total supply, down from 26.62% in June.

Bitcoin Supply Distribution

A massive recovery may be the last thing to hope for, even as 2022 ends. It is becoming a daunting task to convince investors to return to the market with topics of Sam Bankman-Fried and his involvement in the cascading events that led to his company filing for bankruptcy under Chapter 11.

Is the Bitcoin Bear Market Coming to An End?

All signals currently point to more short-term turmoil for Bitcoin price. However, Rekt Capital, a Twitter pseudo analyst, believes that the Bitcoin bear market trend is coming to an end, based on the asset’s four-year cycle principles.

However, the largest cryptocurrency may print another bearish candle to tap the bottom. It is worth mentioning that the bear candle may last for most of 2023 ahead of a reversal candle in 2024.

Altcoins to Consider for Quicker Returns

Bitcoin price may continue to wobble in the murky bearish waters in 2023, which calls for further portfolio diversification. Up-and-coming crypto projects could help investors brave the crypto winter, which is predicted to last until the end of next year. The tokens being considered are doing well in their presales, with some ready to list on CEX as early as January.

FightOut (FGHT)

A new promising cryptocurrency project built around the fitness lifestyle. FighOut will allow people worldwide to monetize their fitness goals through rewards for competing workouts and challenges.

Following the presale, FightOut will build a real-time fitness app to track the members’ progress. The team will also purchase gyms worldwide to help users grow within a vibrant community.

Expert Web3 developers have been brought together to enable the transition from Web2 to Web3 without spending much money, as has been the case with other M2E projects like STEPN. FightOut looks forward to revolutionizing how people move and earn in the metaverse.

Visit FightOut Now.

Dash 2 Trade (D2T)

Investors interested in a promising cryptocurrency project providing everyday traders with accurate analytics and signals may consider Dash 2 Trade. With this blockchain platform, users will have access to trading signals and social analytics on on-chain data with which they can make the most out of the market.

Learn2Trade backs dash 2 Trade, a renowned investment ecosystem that has, over the years, helped thousands of people to become successful traders. A social trading dashboard allows users to copy winning trading signals and strategies.

D2T is the token powering Dash 2 Trade’s ecosystem. Its presale is almost at the finish line, having raised $11.31 million. Investors are buying 1 D2T token for $0.0533 ahead of the first CEX listing on January 11.

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C Charge (CCHG)

The current electric vehicle (EV) charging system needs to be improved due to issues such as lack of standardization. On the other hand, the carbon credits industry, projected to be worth $2.44 trillion by 2027, is dominated by big corporations like Tesla, locking out individuals who drive EVs.

However, C+Charge hopes to drastically change the narrative by building a blockchain-based Peer-to-Peer (P2P) payment system for EV charging stations that will allow the drivers of electric vehicles (EVs) to earn carbon credits.

C+Charge presale launched recently with $32k raised in the first stage. Investors can buy 1 CCHG for 0.013 USDT, but the price will shoot to $0.0165 USDT in the next round.

Visit C+Charge Now.

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