Bitcoin’s weekly chart presents an intriguing technical setup as market participants anticipate a significant price movement. The current chart formation suggests a pivotal point is approaching, with an 11% move on the horizon, as inferred by Skew Analytics.
The recent candlestick pattern resembles a “tweezer” bottom, identified by the wicks touching down into a demand zone around $40,000. This area acts as a critical support level where buying interest historically comes in, indicating potential upward pressure. However, the topside of the previous weekly open around $44,000-$45,000 has been swept, revealing a supply zone where sellers previously stepped in, potentially capping upward moves.
$BTC 1W
Interesting or pivotal closeTechnically this is a tweezer bottom close (wicks into $40K demand)
however topside open of the previous 1W open was swept, which is market supply currently ($44K – $45K supply)
either way 11% move is coming soon pic.twitter.com/21x3N4Q2oL
— Skew Δ (@52kskew) December 25, 2023
Given this setup, two primary scenarios could unfold in the near term. The first, a bullish case, sees BTC rebounding from the $40,000 demand level, where the tweezer bottom suggests a floor. Should buyers maintain control, a push through the $44,000-$45,000 supply zone could see BTC aiming for an 11% move toward the mid-$40K region, possibly testing the $48,000 resistance.
Conversely, if the $40K level fails to hold as support, there is a bearish scenario where Bitcoin could retreat, challenging the lower support levels. This could initiate a move down by 11%, potentially visiting the $36K zone, where the market may seek new demand.
Inscriptions and high Bitcoin fees have been the recent hot topics for the asset, indicating a robust network but also raising concerns over scalability and transaction costs. Meanwhile, bullish sentiment around miner companies suggests confidence in the sector’s profitability and long-term growth, despite Bitcoin’s price consolidation.
Apart from Bitcoin, Solana’s growth spurt contrasts starkly with the perceived stagnation in Ethereum’s DeFi ecosystem, which some community members describe as “dead.” This divergence in sectoral momentum could influence capital flows into the crypto market, potentially impacting Bitcoin’s trajectory.
