Bitcoin fell nearly $ 4,000 on December 28 as the market issued a strong reminder that the bull run was yet to come. Data from TradingView shows that BTC / USD hit an intraday low of $ 47,309 after nearing $ 52,000 on Dec 27, marking a three-week high.
Traders have recalled the ongoing sector-based trading of Bitcoin.
“People often get lost in resistance zones. Still range trading. Nothing has changed. ”Scott Melker summary.
The $ 52,000 ride actually didn’t hit any of the previously identified tipping points, specifically $ 53,000 – Bitcoin’s market cap of $ 1 trillion.
Meanwhile, trader Pentoshi has identified $ 44,000 as a possible low point if the downtrend accelerates. The slightly longer time frame offers a similar outlook based on recent behavior.
BTC 4 hours:
Pivot point around which the price revolves.
Bounce or back to the bottom of the canal? pic.twitter.com/BTJR5rN87I
– Nunya Bizniz (@Pladizow) December 28, 2021
“4h chart: the pivot point acts as a turning point. Up or back to the bottom of the canal? “
However, when zooming out, bearish considerations are pending. William Clemente, senior analyst at Blockware, identified the possibility of the behavior repeating shortly after the 2017 all-time high, resulting in an entire year of declines.
“Judgment Day is coming for BTC,” said Mr. alarm.
Bitcoin was macro-contrarian on December 28th when the S&P 500 hit its 69th all-time high of the year.
The US Federal Reserve will play a decisive role in shaping the market environment in 2022 when it comes to Bitcoin’s performance.
Meanwhile, during the holiday season, BTC / USD faces low liquidity and potentially high volatility.
Whale is the factor that lowers the price?
Bitcoin is declining as several indicators point to a bearish outlook for the asset. Santiment data shows that “whales”, large owners of 1,000 to 10,000 bitcoins, have sold coins. The share of whales in supply fell to 27.52% last week. In addition, the supply held on exchanges has increased to 2.25 million bitcoins. Coin balances on exchanges are often used as an indicator of price movements: fewer coins held on exchanges are considered bullish because they show that fewer owners are selling their property or that fewer people intend to sell their property.
Elsewhere, Whale Alert, a tracker of whale transactions, reported that six consecutive large cryptocurrency transactions were transferred between anonymous wallets in the past 24 hours.
There were three 15,047 BTC transactions and three 10,158 Bitcoin transactions for a total of $ 3.917 billion. Each transaction costs just $ 0.7 – a low transaction fee that no other bank in the world can match.
The source: Twitter
Bitcoin has had a tough year, even though the crypto market has jumped to new highs. When the global crypto market cap hit $ 3 trillion in early November, it hit an all-time high of $ 69,000 but has since fallen downhill. The past few weeks have been aggravated by other lower capitalization assets like Polygon and Terra hitting new ATHs. Bitcoin’s market cap is currently just over $ 931 billion at press time, which is roughly 38% of its market share.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.