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BTC price is heading towards $16K as stocks and the dollar fluctuated in the last session



bitcoin (BTC) sparked more volatility on Wall Street on December 30 as BTC/USD approached $16,000.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Will the new year see “long-awaited ups and downs?”

information from Cointelegraph Markets Pro And the TradingView Show BTC/USD falling to $16,337 on Bitstamp.

The pair has been gradually increasing volatility in the days after Christmas, as analysts await the possibility of a final bout of movement before the yearly close.

“Last trading day of the year for TradFi, but the cryptocurrency will be trading over the weekend. We may see some much-anticipated Bitcoin volatility around the weekly/monthly close and early 2023,” on-chain analysis resource Material Indices overwhelming.

Renowned trader and analyst Rekt Capital pointed out This “Historically, a strong indication of where the bottom of $BTC is when a bearish BTC Candle 2 makes its yearly close.”

Rekt Capital has been discussing four-year Bitcoin halving cycles, with the year following the halving traditionally one of the total losses.

Thus, he argued, the worst could be by the end of the week, “and any negative wicking that occurs in the next 3 candle is just a bonus for bargain buyers.”

Annotated BTC/USD chart. Source: Rekt Capital / Twitter

On lower timeframes, the picture remains unclear, with BTC/USD stuck in a narrow range still above $1,000 above multi-year lows from the fourth quarter.

Binance order book data uploaded by Material Indicators showed a lack of tangible support between the spot and $16,000, with resistance stacked at $17,000 and above.

BTC/USD order book data (Binance). Source: Material Indicators / Twitter

As Cointelegraph mentionedForecasts for the first quarter of 2023 range from a recovery above $20,000 to a new shock for the bulls in the form of a flight below $10,000.

Risky assets may see ‘some delay’

On a macro level, US stocks opened to modest losses, and both the S&P 500 and the Nasdaq Composite are down nearly 1% at the time of writing.

Related: Research Suggests Bitcoin ‘Not Undervalued’ as BTC Price Skews Near $16K

The US dollar also seemed unable to make new gains in time for the end of the year, with the US Dollar Index (DXY) continuing a downtrend to six-month lows.

“Watch the DXY US Dollar Index here! A breakdown may add momentum to bull market dynamics,” Caleb Franzen, founder of Cubic Analytics, said. Tell Twitter followers on Dec 29.

“The Fed is still tightening, with balance sheet cuts potentially becoming an important factor in 2023. However, some risky assets may soon be deferred.”
US Dollar Index (DXY) chart in the form of a one-day candle. Source: TradingView

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