Bitcoin price remains range-bound despite recording some gains in the initial sessions of 2023. As at the time of writing, BTC/USD was at $16,683.13; up by 0.38%. Risk aversion will likely continue to weigh on the crypto industry in the short term.
What’s driving the bitcoin price market?
While bitcoin price has made some gains in the new year’s first two sessions, it remains range-bound as the risk-off mood continues to drive the crypto industry. One of the tools that highlight this uncertainty is the crypto fear & greed index. The index analyzes the key emotion driving the crypto sector on a daily basis.
As has been the case in recent months, fear continues to shape activities in the cryptocurrency industry. Monday’s reading of 27 is just a slight improvement from the prior session’s fear level of 26.
The FTX scandal and subsequent contagion risks appear to have lowered investors’ expectations that the crypto winter will end in the initial months of 2023. Besides, recession concerns may continue to weigh on the industry in the short and medium term. With this in mind, BTC/USD will likely remain below the crucial zone of $20,000 for a while longer.
Bitcoin price prediction
In the first two sessions of the new year, BTC/USD has been in the green. However, the recorded gains are rather subtle; maintaining it in the tight range that has been in place for over two weeks now.
On its four-hour chart, bitcoin price was trading above the 25-day exponential moving average while hovering along the 50-day EMA. Besides, at 56, its relative strength index (RSI) is close to the neutral level.
I forecast that the crypto will record rather subtle movements over the remainder of the week as investors shift from the holiday mood and financial markets gather momentum. On the one hand, I expect it to continue finding support along 16,500. Below that level, 16,375.40 will be a support zone worth watching.
On the upside, bitcoin price may face resistance at the psychological level of 17,000 for a while longer. This prediction is founded on the uncertainties and risk-off mode that continues to impact the broader crypto industry. With further bullish momentum, the next target will be at 17,500.