Bitcoin price fails to retake $17K with market ‘not prepared’ for dip

Market Analysis

Bitcoin (BTC) divided traders yet again on Dec. 21 as sideways BTC price action split opinion on the future.

$17,500 becomes popular BTC price target

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it acted within a tight range just below $17,000.

A single brief spike above the $17,000 mark failed to last, the pair returning to familiar territory from the past week.

For popular traders, there was a lack of consensus, with some calling for an eventual breakout to the upside and others demanding a rapid fall toward $10,000.

“I’d want it to hold $16.7K in order to see continuation on Bitcoin,” Michaël van de Poppe, founder and CEO of trading firm Eight, told Twitter followers on Dec. 20:

“For now, it’s fine. Some sideways consolidation, before breaking $17K for further continuation to $17.5-17.7K.”

Fellow trader and analyst Elizy agreed on the potential for a rethink once $17,500 hit, while Crypto Tony also eyed that zone as a line in the sand.

“Holding that EQ would still present a good opportunity for us to pump to the supply zoned around $17,300 – $17,600. My stop loss on my short is if we close above $17,600,” he commented alongside a chart on the day.

Trading resource Game of Trades, meanwhile, eyed the potential for the S&P 500 to punish bears next.

“Short squeeze setup in the works for the market,” it predicted alongside a put/ call ratio chart for the index:

“A big move up and it’s game over for all these puts.”

Far from bullish, on the other hand, Il Capo of Crypto warned that a downside move would take market participants by surprise.

“Most people are not prepared for what is coming and it shows,” he tweeted, echoing a tone in place for much of the year.

Il Capo of Crypto additionally noted that “some altcoins leading the drop already, breaking key supports and most of them making new lows.”

“So calm being out of the market,” he added:

U.S. dollar stable after Japan shake-up

After surprise events involving the Bank of Japan (BoJ) the day prior, the U.S. dollar began to consolidate after seeing a fresh drop.

Related: ‘Forget a pivot’ — Markets won’t see Fed rate cut boost in 2023, says analyst

The U.S. Dollar Index (DXY), ostensibly still inversely correlated to crypto markets, focused on the 104 mark at the time of writing.

“DXY lower due to other currencies becoming relatively stronger on hawkish policy —> stocks + crypto down/sideways,” commentator Tedtalksmacro summarized in part of a Twitter reaction to the BoJ.

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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