2 - 3 minute read
As the year comes to a close, Bitcoin’s price has remained a topic of discussion among analysts and investors. While some predict a bullish breakout, potentially reaching a target of $18,000, others are expecting a bearish breakout, with a target of $14,000.
According to Vince Prince, a technical analyst on TradingView, Bitcoin is currently trading in a major parallel channel formation, with resistance within the upper boundary and support within the lower boundary. This formation could potentially lead to either a bullish or bearish breakout, with targets of $18,000 and $14,000 respectively.
On-chain data from research company Glassnode supports the idea of a potential rally, as the percentage of Bitcoin supply held by retail traders has increased to 17% this year, totaling approximately 3.57 million. While the underlying value of Bitcoin remains 75% below its all-time high, the number of individual users continues to grow.
The percentage of Bitcoin supply held by retail has soared to 17% this year.— Will Clemente (@WClementeIII) December 20, 2022
Not perfect yet, but solid for a 12-year-old asset and definitely trending in the right direction.
Bitcoin’s supply disperses over time, while Fiat’s holder base concentrates to whales over time. pic.twitter.com/ipDbWVmcEl
Will Clemente, co-founder of ReflexivityRes, believes that Bitcoin’s price is heading in the right direction, stating that “the percentage of Bitcoin supply held by retail has soared to 17% this year. Not perfect yet, but solid for a 12-year-old asset and definitely trending in the right direction. Bitcoin’s supply disperses over time, while Fiat’s holder base concentrates to whales over time.”
As the market awaits the final confirmation of the channel formation and the potential breakout, investors and analysts will be closely watching the movements of Bitcoin’s price in the coming weeks.