Bitcoin (BTC) is trending down after hitting one-month highs around the latest macroeconomic data and policy update from the United States.
Having topped out at around $18,370 on Bitstamp on Dec. 14, BTC/USD is now giving back its gains, leading traders to eye where the next reversal may occur.
Opinions differ — some warn that support levels for bulls to hold are already tumbling, while others believe that recent events are just another dot on the path to much lower levels.
Cointelegraph takes a look at what some popular commentators are looking next for when it comes to short-term BTC price action.
Michël van de Poppe: $17,200 must hold for shot at $20,000
Having called the macro market reaction to the Federal Reserve “relatively boring” this week, Michaël van de Poppe, CEO and founder of trading firm Eight, says support levels are already close for BTC/USD.
With the pair down almost $1,000 from local highs at the time of writing, Van de Poppe eyed $17,200 as a line in the sand for bulls.
After the gains, a higher low (HL) could be on the cards next. To the upside, bulls holding support may yet deliver a Santa rally which includes a trip past the $20,000 mark.
“All in all, We’ll have some consolidation on Bitcoin, seeking for a HL,” he told Twitter followers.
“Area to hold remains the same; $17.2-17.4K. If we do, path towards $20.5K in 2-4 weeks is open.”
BTC/USD last traded above $20,000 just before the FTX debacle sent the entire crypto market tumbling 25% or more.
Daan Crypto Trades: Market wants to “take out everyone”
Bitcoin is reaching for liquidity up and down, popular trader and analytics account Daan Crypto Trades says.
Having highlighted $17,600 — Bitcoin’s low from June this year — as an important level for bulls, BTC/USD took a matter of hours to head even lower.
As such, it was clear that both longs and shorts could be punished on short timeframes.
“All jokes aside, the market is out to take out everyone on both sides right now,” Daan wrote in a subsequent tweet.
“Good to keep note of all the untapped highs & lows to see where price possibly wants to head to next.”
That untapped liquidity extended to just above $17,000 at the time of writing, while to the upside, $17,750 and up represented sell pressure.
Daan previously flagged $18,200 as an important level to flip to support in the event of sustained upside returning.
BTC/USD annotated chart. Source: Daan Crypto Trades/ Twitter
Crypto Tony: $17,300 “will get hit”
Fellow trader Crypto Tony meanwhile said he assumed that $17,300 would make a reappearance on the day.
Related: Bitcoin bear market 70% dip kills BTC ‘tourists’ as metric screams buy
“Hedge short is doing nicely and stop loss on Bitcoin on my prior long at $17,300 no doubt will get hit today. Only took partial profits on that push, but not a great deal. Not the best trade and not the worse,” he explained to followers.
A further tweet added that BTC/USD needed to see additional buying interest for fresh upside.
As Cointelegraph reported, there are many much more bearish takes on BTC price action, including those of Il Capo of Crypto, who still believes that mass capitulation is yet to come.
Longer term, Crypto Tony also refuses to rule out a dive to as low as $10,000.
BTC/USD traded at around $17,500 at the time of writing, data from Cointelegraph Markets Pro and TradingView showed, just before the start of trading on Wall Street.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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Author: William Suberg