Bitcoin and Ether are trending down after seeing one-month highs, but the possibility for more upside remains. BTC was trading at $17,398 and down by 1.82% in the last 24 hours, while Ether dropped 1.72% and was holding at $1,270.
Glenn Williams Jr. crypto markets analyst believes that the Federal Reserve slowed the pace of interest-rate increases and has a long way to go before it can end its push to drive away inflation. The US central bank will have to see a significant increase in unemployment before price rises can moderate. Williams said hopes of a quick reversal by the chair Jerome Powell and his colleagues might be premature as funding rates are still in the negative.
Analysts pointed out that BTC price is seeing a steep profit-taking consolidation following the bull’s 8% rally. But on December 15, it was down 2% as bears are pushing for a breach of the 8-day exponential moving average. There is potential for the topmost cryptocurrency to reach higher targets. Bitcoin’s next bearish targets lie at the previous triangle apex zone near $17,085 with a daily close beneath it would be bad news for its price. If BTC continues to consolidate above $17,085 on the larger time frame, it could make a run for $18,245.
It should be noted that the bullish trend’s invalidation point is a daily closing candlestick beneath $17,085. If bears manage to dominate, a downtrend shift targeting the yearly low at $15,476 would be a justifiable trade idea. However, if the said price action occurred, Bitcoin would decline by 9%.
Michael van de Poppe, CEO, and founder of Eight, said support levels are already close to the Bitcoin price. He drew a line at $17,200. Van de Poppe said after the gains, the higher low could be on the cards and to the upside, bulls holding support may deliver a Santa rally which includes rocketing past $20,000.