Bitcoin (BTC) is currently experiencing a period of high volatility, with initial cryptocurrency tests below $16,000. The asset’s recent price action has extended a bearish stretch, with investors still searching for a possible bottom and hoping Bitcoin can repeat historical trends ahead of the Thanksgiving holiday.
For the past three years, the holiday has acted as a catalyst for the latest episode of Bitcoin’s bull run. In 2021, the asset traded at around $58,927, with gains of over 214% since Thanksgiving 2020.
In fact, Bitcoin was valued at $18,764 during the 2020 holidays, with a gain of over 162% from its 2019 price of $7,150. However, based on various technical analysis indicators, Bitcoin’s uptrend will be halted on Thanksgiving in 2022, with the asset expected to trade at $16,353 according to CoinCodex.com forecast.
The Bitcoin community remains optimistic
As of today, Bitcoin is heading into this year’s Thanksgiving with downward momentum after plummeting about 71% and losing nearly $700 billion in market cap since it last ate turkey
However, the bitcoin community on CoinMarketCap, which uses this price estimation feature, predicts that bitcoin will end the month at a high of $20,623 before the holiday on November 24. The average price prediction is based on votes from 24,402 community members.
With 2022 Thanksgiving sentiment unconvincing, the focus is on whether Bitcoin can defy the bearish environment and initiate bullish movement. At press time, Bitcoin was trading at $16,200 with daily gains of less than 0.5%.
Technical Bitcoin Analysis
Additionally, Bitcoin technical analysis remains negative with a roundup at 14 recommending “Sell”.
It is worth noting that Bitcoin’s price correction is directly influenced by overall market sentiment, led by effects of prevailing macroeconomic factors such as rising inflation. At the same time, the asset is still suffering the effects of the collapse of the FTX cryptocurrency exchange.
In that line, crypto analyst Mark Moss acknowledged that Thanksgiving 2022 was going to be a rough ride for Bitcoin investors. in one tweet On Nov. 22, Moss stated that the focus should shift away from price to other onchain metrics such as network growth and development.
“It’s going to be another tough Thanksgiving for the Bitcoin supporters at the table explaining WHY the USD price is a distraction,” he said.
Although the odds are that Bitcoin has risen year on year since the last Thanksgiving holiday, analysts have identified critical levels that the asset must reach before it exits the bear market. As reported by Finbold, crypto technical analyst Matthew Hyland pointed out that $20,200 is a crucial level that would potentially allow Bitcoin to start a fresh rally.
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