Organizations selling to clear the taxes put bitcoin price under pressure as 2021 ends
2021 was a boom year for the crypto market, although the bulls got stronger to push the Bitcoin price below $ 48,000 to the chagrin of bullish investors, demanding that the “loudness” of the moon reach $ 100,000 by the end of the year.
Data from TradingView shows that Bitcoin took investors on a rollercoaster ride for the past 24 hours, dipping below $ 46,000, and then quickly bouncing back to $ 47,050 today.
BTC / USDT 4 hour chart | Source: TradingView
Here’s what some market analysts are saying about Bitcoin’s last minute price action in 2021, and what is likely to happen in 2022 if the mass adoption of blockchain technology and cryptocurrencies continues.
The key resistance becomes support
Rekt Capital, a market analyst with over 270 Twitter followers, has Upload monthly outline chart to highlight how bitcoin turned key resistance into support.
BTC / USD Monthly Frame Price Chart | Source: Twitter
According to Rekt Capital, “Bitcoin turned resistance levels to new support in February, August and September this month” and is looking for a closing price above the green zone shown in the graph above to confirm that this is a new level of support is.
Regarding the levels to watch in the coming days, Rekt is Capital monitor $ 48,500 as a barometer of the overall strength of Bitcoin.
“If it can reclaim $ 48,500 in support by the end of the week, Bitcoin could retrace the $ 52,000 resistance again.”
$ 52,000 is a major short-term drag
David Lifchitz, ExoAlpha’s managing partner and chief investment officer, explains why Bitcoin has weakened in the last few days of the year, accusing institutional investors of apparently “selling to make money”. +3)… closes on December 31 ”.
Much of the volatility last week was due to weak market liquidity, according to Lifchitz. He suggested that it would come as no surprise “to see Bitcoin rally to $ 50,000 … as well as drop to $ 46,000” in the next few days.
If the bears break below the $ 46,000 support and complete a large head and shoulders pattern, Lifchitz suggested that “the next stop could be at $ 30,000,” but “we are still.” far from the level. “That and the technical models clearly show that it is not possible.”
Lifchitz, on the flip side, cited $ 52,000 as “the main hurdle that Bitcoin failed twice”.
“If this resistance ($ 52,000) reverses, the next leg will stop at $ 60,000 and then at $ 70,000 (new all-time high (ATH)).”
The final warning was from Lifchitz regarding the distribution of 146,000 BTC in the first half of 2022 from Mt. Gox has the “potential to reshuffle the bitcoin trend”.
No reason to panic
Reassurances for traders concerned about a dip below $ 46,000 were recently delivered by analyst Devchart. He was post The graph below shows that Bitcoin was trading within a well-defined range for most of December.
BTC / USDT 4 hour chart | Source: Twitter
“If you zoom out, you’ll find that as of December 3rd, we were just back at the bottom of the same range. Don’t panic until we break out of this area, ”explains Devchart.
Analyst Michael van de Poppe show a similar outlook suggesting that the market may weaken in the short term before rising.
“The market is pretty boring these days. Just a bottoming out process for Bitcoin. We’re retesting $ 46,000 as support, bounced back, but could drop to lower levels before we bounce back a bit. ”
The total capitalization of the crypto market is currently $ 2.201 trillion and the dominance of Bitcoin is 40.3%.
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