With a double top forming before dropping below $ 48,000 for the time being, some analysts suspect Bitcoin could drop to $ 44,000 before the uptrend resumes.
It looks like the year-end rally that many investors were hoping for would have to wait until 2022 as the bears gained the upper hand, pushing BTC price below the $ 48,000 support.
Data from TradingView shows that a wave of sell-offs from last night broke the $ 48,000 support, pushing BTC price down to the current $ 47,921.
BTC / USDT 4-hour chart | Source: TradingView
Here’s what some market analysts say about the reasons for this recent decline, and what to look for as we approach the end of 2021.
Divergence formation lose weight on RSI before reversing
Details of the technical reasons for BTC’s year-end correction were provided by options trader “John Wick”, who released the following chart highlighting a bearish “fakeout” when the price begins to fall.
“The histogram has formed a double high, which is clearly defined by a declining divergence of the RSI. Notice that price action is trending up while the RSI is trending down. Bitcoin also had an Alpha Thrust & Squeeze fakeout, ”explained John Wick.
BTC / USDT 4-hour chart | The source: Twitter
Bitcoin could drop to $ 44,000
BTC’s ongoing struggles for the 21-week exponential moving average are highlighted in the chart below by market analyst “Rekt Capital”. Weekly chart shows the problem Bitcoin had in breaking the technical indicator.
BTC / USDT 1 week frame chart | The source: Twitter
According to Rekt Capital, Bitcoin’s price action resembles a scenario that occurred in May, “with Bitcoin experiencing several weeks of consolidation between two bull market EMAs” that could soon be reduced to $ 44,000.
“Historically, Bitcoin fell into the orange zone during a retest of the red zone, so another visit to the orange zone is likely.”
Waiting for a breakout above $ 52,000
Analyst “Don Alt” has show Advice on what traders need to be aware of in the coming days and weeks by posting the graph below, which shows that Bitcoin is in “a pretty clear downtrend”.
BTC / USDT 1-day frame chart | The source: Twitter
According to Alt, there isn’t much for Bitcoin to continue trading at the current levels. It is now waiting for a clear break above the first red resistance area on the chart, which is located at $ 52,000.
“I’m starting to hope that over $ 52,000, over $ 60,000, the bull market is back in action. Until one of these things happens, I’ll look for deep wicks and focus on the more interesting things. “
The total capitalization of the crypto market is currently $ 2.234 trillion and the dominance of bitcoin is 40.3%.
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Analysts warn Bitcoin could fall to $ 44,000
With a double top forming before dropping below $ 48,000 for the time being, some analysts suspect Bitcoin could drop to $ 44,000 before the uptrend resumes.
It looks like the year-end rally that many investors were hoping for would have to wait until 2022 as the bears gained the upper hand, pushing BTC price below the $ 48,000 support.
Data from TradingView shows that a wave of sell-offs from last night broke the $ 48,000 support, pushing BTC price down to the current $ 47,921.
BTC / USDT 4-hour chart | Source: TradingView
Here’s what some market analysts say about the reasons for this recent decline, and what to look for as we approach the end of 2021.
Divergence formation lose weight on RSI before reversing
Details of the technical reasons for BTC’s year-end correction were provided by options trader “John Wick”, who released the following chart highlighting a bearish “fakeout” when the price begins to fall.
“The histogram has formed a double high, which is clearly defined by a declining divergence of the RSI. Notice that price action is trending up while the RSI is trending down. Bitcoin also had an Alpha Thrust & Squeeze fakeout, ”explained John Wick.
BTC / USDT 4-hour chart | The source: Twitter
Bitcoin could drop to $ 44,000
BTC’s ongoing struggles for the 21-week exponential moving average are highlighted in the chart below by market analyst “Rekt Capital”. Weekly chart shows the problem Bitcoin had in breaking the technical indicator.
BTC / USDT 1 week frame chart | The source: Twitter
According to Rekt Capital, Bitcoin’s price action resembles a scenario that occurred in May, “with Bitcoin experiencing several weeks of consolidation between two bull market EMAs” that could soon be reduced to $ 44,000.
“Historically, Bitcoin fell into the orange zone during a retest of the red zone, so another visit to the orange zone is likely.”
Waiting for a breakout above $ 52,000
Analyst “Don Alt” has show Advice on what traders need to be aware of in the coming days and weeks by posting the graph below, which shows that Bitcoin is in “a pretty clear downtrend”.
BTC / USDT 1-day frame chart | The source: Twitter
According to Alt, there isn’t much for Bitcoin to continue trading at the current levels. It is now waiting for a clear break above the first red resistance area on the chart, which is located at $ 52,000.
“I’m starting to hope that over $ 52,000, over $ 60,000, the bull market is back in action. Until one of these things happens, I’ll look for deep wicks and focus on the more interesting things. “
The total capitalization of the crypto market is currently $ 2.234 trillion and the dominance of bitcoin is 40.3%.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
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