The downward pressures facing the cryptocurrency market in late 2021 have continued into the first week of 2022 after the price of Bitcoin (BTC) fell below $ 47,000 on January 1 and the asset is still trading. faces big setbacks on shorter time frame charts.
Data from Cointelegraph Markets Pro and TradingView show that after rising above $ 47,500 to start the new year, the price of the cryptocurrency fell under pressure on Monday afternoon. Currently, the price has fallen to $ 46,500, where the bulls are now looking to mount a defense.
Here’s what various market analysts say about the path ahead for Bitcoin in 2022 as the global economic system continues to grapple with inflation.
BTC needs to return to support at $ 48,670
The analysis of the weekly behavior of the price of BTC was approached by the trader and pseudonym Twitter user ‘Rekt Capital’, who public The following chart highlights the main support and resistance zone at $ 48,670.
As shown in the chart above, “BTC has again successfully touched the black diagonal as support” according to Rekt Capital, and “has done so for three weeks in a row.”
The weakness at the beginning of the year has positioned BTC below the established support zone, highlighted by the red horizontal line. Rekt Capital sees this as a potential target to consider in the short term.
The analyst said:
“However, the recent weekly close means that the red horizontal (~ $ 48,670) has been lost as support. BTC could soon rebound in an effort to regain the red line as support.”
Aiming for $ 46,000 in the short term
BTC’s current weakness was also addressed by Cointelegraph analyst and contributor Michaël van de Poppe, who posted the following tweet suggesting that the rejection at $ 48,000 could lead the price to sink below $ 46,000.
#Bitcoin rejected at the $ 48K level, through which it’s still seeking support to be hit.
Looking at the region at $ 46K. pic.twitter.com/z0v88Ls58v
– Michaël van de Poppe (@CryptoMichNL) January 3, 2022
Despite short-term setbacks for Bitcoin, the long-term outlook remains bullish for many investors. Among them is the analyst and pseudonymous Twitter user “GalaxyBTC”, who public The following graph outlines a possible breakout in the first quarter of 2022.
GalaxyBTC said:
“It is a matter of time for BTC to break higher, and the later, the stronger the rise. In the first quarter it has only risen.”
The formation of a bullish cup-handle pattern hints that we will reach the moon in March.
This positive outlook for the future of BTC expressed by GalaxyBTC was seconded by trader and pseudonymous Twitter user, “Bobby Axlerod”, who posted the following chart describing the anticipated trajectory of a handle cup pattern formation on the chart. of Bitcoin in the coming months.
Bobby Axelrod said:
“The handle will end up looking something like this in my opinion: $ 58,000-60,000 in mid-to-late January; a pullback to $ 48,000-50,000 the first week of February; hitting the all-time high again in late February or very early. March; small setback in early March, then a rocket. “
The total cryptocurrency market capitalization currently stands at $ 2.234 trillion and Bitcoin’s dominance index is 39.6%.
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