Bitcoin drops below $ 49,000 as volume continues to decline, altcoins bloody

Bitcoin fell to $ 48,000 on Thursday and lost nearly 5% after hovering above $ 50,000 in the past two days.

The trading volume of the largest cryptocurrency by market capitalization on the centralized exchange continues to decline.

Source: CryptoCompare

Much of the crypto market is also in the red, with ether falling more than 5% to around $ 4,100. The bear market came as US stocks fell and the US dollar index (DXY), which tracks the value of the greenback against major fiat currencies, rose 0.28%.

Source: Coin360

Edward Moya, Senior Market Analyst at Oanda said:

“The long-term bullish fall remains for Bitcoin, but in the short-term everything looks bearish. An extended altcoin season and short-term bearish sentiment in risky assets as Omicron regains momentum. “

Meanwhile, Bitcoin continues to struggle below the USD 50,000 resistance.

BTC / USD 4 hour chart with support / resistance and RSI levels. Source: TradingView

Last month’s short-term downtrend remains in place, which could limit profits to over $ 50,000 to $ 60,000.

The cryptocurrency is down around 2% in the past 24 hours, although support around the 200-day moving average (currently at $ 46,500) could curb the current pullback.

BTC buying activity remains weak despite some oversold signals on the chart. This reduces the chances of a significant upward movement in the new year, especially as the upward momentum on the weekly and monthly charts is weakening.

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