Bitcoin price continues to trade in a narrow range near $16.7K as investors continued to assess the outlook for monetary policy and economic growth in 2023. The week is crucial as traders await US manufacturing PMI data on Tuesday, the latest Federal Reserve policy meeting minutes on Wednesday, and the December jobs report on Friday.
Meanwhile, the US Dollar Index (DXY) records a 0.63% increase on Tuesday, rising again above 104. Therefore, volatility in the crypto market can be seen this week, which will decide the Bitcoin price’s direction in the coming weeks.
The total crypto market volume increased by 14.02% over the last 24 hours. Bitcoin price will remain under pressure this week, while most of the upside push will come from altcoins.
On-Chain Data Signal Bullish Scenario For Bitcoin Price
According to on-chain analysis, the Taker Buy/Sell Ratio (30DMA) data on January 2 again generated a signal to buy Bitcoin. This is the fourth time a buy signal has been shown by the metric.
Taker Buy/Sell Ratio (30DMA) is one of the best metrics for identifying a buying cycle. However, it applies only in a bull market. In times of instability or bear market, this indicator almost perfectly generates only sell signals. Therefore, one must confirm the buy signals with other short-term on-chain indicators as per trading strategy.
As the Taker Buy/Sell Ratio (30DMA) generated buy signals for Bitcoin four times during the bear market. Russia’s invasion of Ukraine, the Terra-LUNA crisis, and the collapse of FTX only negatively impacted the Bitcoin price action in 2022.
However, the 4th buy signal is likely a bullish call as BTC SOPR MA30 data indicates the possibility of BTC price turning bullish in 2023 is quite higher. Investors can take the DCA strategy to accumulate Bitcoin at lower levels, as experts believe institutional investors and whales will start a rally anytime.
Can Bitcoin Turn Bullish Now?
Popular analyst Michael van de Poppe believes Bitcoin price can rally above $17K in the coming days. The BTC price will continue to hold strongly above the crucial $16.5K support level.
As per technical indicators, the BTC price moves in Bollinger Bands Squeeze and RSI is increasing. Thus, the BTC price will continue to move sideways until the squeeze ends.
Also Read: This Bullish Pattern Bolsters BTC To Escape Dormant Market Condition
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
