• Bitcoin price has finally shown signs of life, although to the downside, which may be the dominant direction in 2023.
• The cryptocurrency is currently trading at $16,600 with a 1% loss in the last 24 hours.
• Historically, the first month of the year is among the worst performers for Bitcoin, with the cryptocurrency trading in the red for 60% of its monthly performance during January.
The Bitcoin price has finally shown signs of activity, although the direction appears to be towards the downside. After being stuck at a single level during the holidays, the cryptocurrency is now trading at $16,600 with a 1% loss in the last 24 hours. Across the cryptocurrency market, red is the predominant colour, with many assets following BTC into the downside.
Despite this bearish momentum, the bulls may have difficulty pushing the price beyond local resistance at around $17,500 and $19,200, which used to serve as critical support. Historically, the first month of the year has been one of the worst performers for Bitcoin. Since 2013, the cryptocurrency has traded in the red for 60% of its monthly performance during January.
This period is also known to see a spike in volatility, which often favours the selling side. This is due to the decline in trading volume due to the holiday season, which is poised to change in early January when market participants return to active trading.
With these factors in mind, it’s important for traders to be aware of the potential for sudden changes in the Bitcoin price. By taking precautions such as having a risk management plan in place, traders can protect themselves from the volatility that often comes along with the first month of the year.
