Expert identifies historical Bitcoin Fibonacci levels for ‘large upside move’

Bitcoin (BTC) bulls and bears continue to harbor almost similar strength as the flagship cryptocurrency trades in a sideway pattern. Investors are in turn, looking for positions that could hint at the next price movement of the digital asset amid the ongoing consolidation phase.

Notably, by referencing historical data, a crypto analyst by the pseudonymous Nebraskagooner in a tweet on December 28 has identified historical Fibonacci levels that could trigger Bitcoin’s next upside move based on the chart patterns.

In particular, the analyst identified the range between $16,000 and $22,000 as the possible accumulation zone that can trigger Bitcoin for the next ‘large upside move.’ At the same time, the trading expert pointed out that the zone between $16,000 and $12,000 can be a range for instant reversal.

In making the analysis, the analyst referenced the previous Fibonacci levels recorded on February 22, 2022, where he noted that if the asset closed below $37,600, it would form a key long-term zone. In this case, Bitcoin has since corrected to consolidate below $17,000.

Fibonacci levels are a technical analysis tool that uses horizontal lines to indicate areas of support or resistance in the price of an asset. The tool can be used to identify support and resistance levels.

Similarly, according to a previous Finbold report, BTC is currently in an “extreme long-term hodler accumulation zone by considering Bitcoin’s historical price analysis”.

Bitcoin price analysis

By press time, Bitcoin was trading at $16,582, having corrected by almost 1.5% in the last 24 hours. On the weekly chart, Bitcoin has also slumped by almost similar margins at 1.5%.

In the meantime, Bitcoin’s one-day technical analysis on TradingView is bearish, with both the summary and moving averages aligning with the ‘strong sell’ sentiment at 17 and 14, respectively. Oscillators are for ‘sell’ at 3.

Bitcoin outlook

With Bitcoin lacking critical triggers for a decisive price movement, the asset will likely end the year in a consolidation phase. Notably, at the moment, investors are monitoring the asset to determine how Bitcoin will trade moving into the new year.

In this line, leading industry players have maintained that Bitcoin is still facing uncertainty in 2023, with macroeconomic factors and adoption serving as critical fundamentals.

For example, Stefan Ristic, a crypto miner running BitcoinMiningSoftware.com, presented a gloomy outlook for Bitcoin in 2023 but was optimistic that the 2024 halving event would form a rally base.

At the same time, Fraser Matthews, president of Netcoins crypto exchange, suggested that Bitcoin is likely to plunge to $10,000 in 2023. Furthermore, crypto trading expert, Michaël van de Poppe stated that if Bitcoin clears the $17,400 and $17,600 resistance levels, the asset will likely accelerate faster.

In the meantime, Pricepredictions’ machine learning algorithm placed Bitcoin’s price at $16,722 on January 1, 2023.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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