Daily Report – Bitcoin and Market Update (December 21 2022)

HTF 1D:

The daily BTCUSD chart suggests that the 200-day resistance at $20500 is the main level that needs to be broken for the bulls to acquire control over the market.

However, thus far, BTC has struggled to break above a local $17500 level, which has served as resistance since the breakdown in November.

Following the breakout failure on top, the more likely path for Bitcoin to resolve in the short term is to the downside.

The major sideways pattern from June to November could be framed as a descending triangle. After the breakdown, the objective is set at $12000.

MTF 4H:

The MTF outlook for Bitcoin suggests a local upswing is taking place. Yet, it’s not backed by a reliable reversal signal so far.

The BPRO Divergence system detected the top divergence at $18300 signal. There have yet to be similar signals to back up an upward pullback, however.

This may suggest that the BTCUSD price action is not entirely reliable for the upward tails it develops. Hence, accounting for the top breakout failure and that the failed patterns tend to perform better in the opposite directions, the downward price movements can still unveil.

If so, the swing low target is $15500, despite local upturns.

Fear & Greed Index

At 26 points on the index scale, the market barometer suggests that the investors’ consensus is leaning toward a bearish continuation, overall.

The index is in the “fear” territory, which desrcibes that the traders are scared that the market would continue to crash.

On one hand, the contrarian investors may benefit from extremeism in the fearful opinions of the traders, as they trade counter assuming the market prices will revert back to the mean values.

On the other hand, even though Bitcoin is heavily underpriced at the time, there is no guarantee that the BTC prices can not go any lower, amid the recessive environment and Russia-Ukraine war.

Be ready for the worst, while hoping for the best.

Caution and common sense are recommended.

Hope it helps.

God bless

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