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BTCUSD Drop in Investment Activity in the Pre-New Year Period

12/27/2022 1:13 PM

Last week, the BTC/USD pair stabilized around 16800.00, where it is currently trading.

As most experts expected, the traditional pre-Christmas rally of the token did not happen, and investors reduced their activity amid the consequences of the bankruptcy of the FTX cryptocurrency exchange and negative signals from the American regulator, which will continue tightening monetary policy next year. The period of low holiday volatility is likely to continue soon.

Experts are trying to guess what awaits the first cryptocurrency and the market as a whole next year, and opinions on this matter differ: optimists believe that prices have already hit bottom and will soon begin to grow, while pessimists believe that quotes will linger at the current levels or may resume the decline. For example, analysts at JPMorgan Chase & Co. note that the bankruptcy of FTX made cryptocurrencies unattractive for a long time for most institutional investors. Also, the current market situation will push global regulators to introduce strict restrictive rules against the digital industry. The largest cryptocurrency platform Binance is under serious pressure from the authorities in the United States, where its activities are being investigated, and in other countries. For example, the exchange's management is accused of illegal advertising in France. Likely, next year the pressure on sector participants will only increase, contributing to the weakening of the leading tokens. The most pessimistic experts expect the market recovery to begin by 2024, after the next BTC halving.

The trading instrument is around 16800.00, where it will remain soon due to the festive mood in the market. If the middle line of Bollinger bands is broken up around 17100.00, the growth will be able to resume to 17830.00 (Fibonacci correction 23.6%) and 18750.00 (Murrey level [7/8]). The key "bearish" level is 16250.00 (Murrey level [5/8], the lower line of Bollinger bands), a breakdown of which will give the prospect of further decline to 15700.00 (the area of November lows) and 15000.00 (Murrey level [4/8]).

Technical indicators do not give a single signal: Bollinger bands and Stochastic are horizontal, the MACD histogram is near the zero zone, and its volumes are insignificant.

Resistance levels: 17100.00, 17830.00, 18750.00. | Support levels: 16250.00, 15700.00, 15000.00.

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