Bitcoin price prediction has become pessimistic, as BTC has dipped below an upward channel. If BTC closes outside of this channel, it is expected to tumble to $16,775.
BTC fell more in the US session after a lower-than-expected US Flash Services PMI on Friday disappointed market participants. Traders appear to be anticipating further Federal Reserve and European Central Bank rate rises.
US Economic Events Drive Price Action
According to current data, wholesale goods prices, excluding food and energy, have declined. This tendency might be attributed to improved supply networks and lower demand as a result of increased borrowing rates. It backs up economists' claims that commodity prices have begun to fall.
Inflation was also slowing according to the producer price index (PPI). The 0.6% increase in the cost of final-demand items, excluding food, energy, and trade services, was apparently responsible for the increase in PPI. In October, the PPI grew by 0.2%, lower than the 0.4% consensus projection, while annual prices declined from 8.4% to 8.0%.
The joint-fastest decline in business activity in more than two and a half years was indicated by the Flash US PMI Composite Output Index, which fell to 44.6 in December from 46.4 in November.
The crypto market appears to be disregarding worse-than-expected economic developments and continues to plummet in response to Fed and ECB rate rise decisions.
SEC Delays ARK 21Shares Spot Bitcoin ETF Decision
The Securities and Exchange Commission (SEC) of the United States has extended the deadline for evaluating whether shares of ARK 21Shares' Bitcoin exchange-traded fund may be listed on the Chicago Board Options Exchange BZX Exchange.
It delayed the decision on whether to authorise Cathie Wood's stock-picking business, ARK Invest, to sell a spot Bitcoin exchange-traded fund until January 27, 2023. On May 13, ARK 21Shares filed the first Bitcoin (BTC) ETF application with the federal regulator.
Several proposals for Bitcoin-tracking ETFs have been rejected by the market regulator this year, including those from Grayscale, Fidelity, and NYDIG. As a result, the decision to postpone the ARK 21Shares Bitcoin ETF was not unexpected.
Bitcoin Price Prediction
The current price of Bitcoin is $16,985, and the 24-hour trading volume is $22 billion. Since yesterday, the price of Bitcoin has plummeted by more than 2.5%.
During the Asian session, the BTC/USD pair gained support at $17,250, which was extended by the 50-day moving average. Increased negative pressure, on the other hand, produced a bearish crossing below $17,200, forcing the BTC/USD pair to plummet toward $16,750.
Bitcoin Price Chart - Source: Tradingview Traders typically employ technical indicators such as the relative strength index (RSI) and moving average convergence divergence (MACD) to assess an asset's price movement and forecast future trends. These indicators are now indicating a negative trend for Bitcoin, implying that the price may fall further. This is bolstered by the fact that the BTC/USD pair just broke through an upward channel on the 4-hour timescale, which is frequently seen as a negative indicator. As a result, the price of Bitcoin is anticipated to fall toward the $16,775 support level, which has previously offered support during periods of market drop.
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