The “Bitcoin Rainbow” Index is consolidating at the lowest point as BTC aims to reclaim $17K

Bitcoin (BTC) appears poised to reclaim the crucial $18,000 support after the position breached $17,000, with the bulls under pressure to show strength. However, the asset has since fallen below $17,000 as the broader crypto market continues to sell off.

Notably, the first cryptocurrency has been consolidating in recent weeks, mainly characterized by sideways price movements as investors look for potential indicators that will likely determine the next price move.

In this class , Bitcoin centers The rainbow price chart is one of the tools that investors use to monitor bitcoin price expectations. The tool uses bands of colors that follow logarithmic regression and past performance regression to provide potential insight into their long-term movements.

On December 7, the bitcoin index on the rainbow chart bottomed out below the “essentially fire sell” level, which is represented by the color blue. The original is consolidated into the center, after being stuck in the area for several weeks.

Bitcoin Raibow chart. Source: BlockchainCenter

The continued consolidation of the charts indicates that Bitcoin has found a bottom, and is facing an upside potential in the near future. On these lines, as reported by Coinphony, based on the recent two-week Bitcoin Moving Average Convergence Divergence (MACD) crossover, the cryptocurrency could be preparing for a bottoming and large rally soon.

It should be noted that the last time Bitcoin reached this level was in March 2020 before embarking on a bull run that culminated in last year’s all-time high of approximately $69,000.

Bitcoin price analysis

As it stands, Bitcoin is trading at $16,804, after correcting around 1% in the last 24 hours. The weekly chart shows that BTC price peaked at $17,300 on December 5th.

Seven day bitcoin price chart. Source: Coinphony

Currently, the bears have more power and sustained pressure on the $16,800 support could lead to a drop in Bitcoin to around $16,400.

The following price movement of Bitcoin

Notably, Bitcoin consolidated below $17,000 as investors continue to monitor news regarding risks that could potentially affect Bitcoin.

In addition to the fallout from the collapse of the FTX cryptocurrency exchange, investors will look at the set of inflation data on December 13, given that some of BTC’s poor performance is linked to prevailing macroeconomic factors.

warning: The content of this website should not be considered as investment advice. Speculative investments. When you invest, your capital is at risk.

The “Bitcoin Rainbow” indicator posted has consolidated at a low point as BTC aims to reclaim $17K for the first time on Coinphony.

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