Here’s why bitcoin traders expect the market to change for the remainder of 2021
Bitcoin price appears to be below $ 48,000, which leads some analysts to forecast a “changing” market through Q1 2022.
Inflation concerns and general concerns about the future of the global economy continue to weigh on the price of Bitcoin and Altcoins, and currently the Crypto Fear and Greed Index is in the “fear” zone where it was originally set. December.
Despite the brief spike in prices in all markets following the recent FOMC meeting at which Fed Chairman Jerome Powell indicated that interest rates will remain low for the time being. signals that 2021 could end bearishly.
BTC price may go down due to macro issues
In a recent report by Delphi Electronic, analysts note that Bitcoin (BTC) price is closely monitoring sentiment changes during the market downturn and it can often take a while to recover.
Delphi Digital went on to say that the current technical setup for BTC “leaves a lot to be desired”, especially after the price fell back below the 200-day exponential moving average and is currently testing the simple moving average.
A similar setup was observed after the major market slump in May 2021 and it will be another two months before BTC can find a local low.
Coupled with the market decline in May and the recent weakness and volatile market conditions, the volume of stablecoins traded has increased. The trading volume rose to $ 57 billion on December 14, while the daily average was always between $ 10 billion and $ 20 billion.
A similar increase in stablecoin volume was seen during the pullback in May, prompting Delphi Electronic to warn that both BTC and Ether (ETH) could fluctuate their prices for the remainder of the year.
Delphi Electronic said:
“The most likely path forward, therefore, is more volatile / flattering price action towards the end of the year, although larger risk events or spikes that aim to punish financial assets are probably not the most likely path. Risk assets are likely to pull BTC and the broader crypto market. “
Related: Historically accurate “Momentum Indicator” hints of the possibility of an impending Bitcoin outbreak
The market is preparing for a rally in the first quarter of 2022
Cryptocurrency analysis firm Jarvis Labs has also expressed a similar expectation that the market will change.Traction“Signals follow a variety of data.
Jarvis Labs highlights evidence that retailers are buying the recent decline and other signs that whales are piling up in the current area, but analysts also note that owners are seeing a price of $ 53,000 in the short term and advises traders to be cautious “until this one Level is reversed. ”
In short, Jarvis Labs claims that $ 42,000 is currently BTC’s local low, but warns that a recovery from $ 53,000 is needed soon.
The total crypto market cap is currently $ 2.233 trillion and the dominance of Bitcoin is 40.6%.