bitcoin (BTC/USD) remains near the $17,000 area as the cryptocurrency market channels positive sentiment in a historically bullish December for the market.
but even then, crypto news It’s largely negative at the moment. And if the whiplash in this area continues to impact prices and limit the benchmark asset to sideways price action, it could result in real maximum pain for traders.
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Bitcoin’s area of ’real maximum pain’
According to one analyst, it is possible that the price of BTC will continue to fluctuate around the current levels for months. Maggs, a pseudonymous crypto trader and analyst, said in a tweeted forecast on Monday that while people can expect a further drop to the $10,000-$14,000 range, this would not be the zone of maximum pain for traders.
In his opinion, Maggs sees the tight $500 range as the “real maximum pain” for bitcoin in 2023, noting that people are largely prepared for a potential leg down to the $14,000-$10,000 area.
But with bitcoin stuck in a small range, most traders will see them take whatever profits they make – essentially an “over-trading ± 2% flat range.” Technical analysts see this scenario as the area of real maximum pain likely to eat into most people’s capital.
Mags tweeted:
“$10k – $14k won’t be max pain for the majority as most of you are prepared for! The real max pain is price moving within the $500 range for months. Most people over- in the ±2% flat range.” You will lose a large part of your capital by trading.”
bitcoin price and stock market
Bitcoin fell below $16,000 in early November as crypto exchange FTX imploded, and in the following months touched prices again as high as $15,600 amid a wider industry contagion.
There Are Still Weeks Left In The Turbulent Year Of 2022 And It Wouldn’t Be Surprising To See Crypto Mirror Action shares, A look at the equity markets shows that Wall Street is set for its worst annual return since 2008.
as Invez Thrown light on This morning, this week’s major monetary policy decisions are from the four major central banks – including the US Federal Reserve, the European Central Bank and the Bank of England. Decisions about events and investor reaction could guide sentiment ahead of the annual close.
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