The year 2021 has been a very successful year for the cryptocurrency market as a whole, despite year-end difficulties that have kept the price of Bitcoin (BTC) below $ 48,000, much to the chagrin of the group. of people who had been asking for a $ 100,000 fluke for BTC.
Data from Cointelegraph Markets Pro and TradingView shows that the past 24 hours have been a roller coaster ride for the biggest cryptocurrency after a brief dip below $ 46,000 in the first hours of trading on December 30 was quickly bought for. push the price of BTC back above $ 47,500 by noon.
Here’s a look at what various market analysts are saying about the year-end price action for Bitcoin and what to expect in 2022 as the mass adoption of blockchain technology and cryptocurrencies continues to develop.
Main resistance turns into support
The analysis of the Bitcoin price action on the monthly chart was discussed by the market analyst and pseudonymous Twitter user ‘Rekt Capital’, who public The following chart highlights how BTC has flipped a major resistance zone in support:
According to Rekt Capital, “BTC has turned February, August and September resistance to new support this month” and is looking for a monthly candle close above the green zone shown in the chart above to confirm this as a new one. support level.
As for levels to watch out for in the coming days, Rekt Capital is keeping an eye on the $ 48,500 price level as an indicator of the overall strength of BTC. The analyst He said:
“If BTC is able to regain ~ $ 48,500 as support by the end of the week, then BTC could revisit the ~ $ 52,000 resistance.”
$ 52,000 is the biggest short-term hurdle for BTC
Insights into Bitcoin price year-end weakness were offered by David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha, who pointed out to institutional investors that they appear to be “selling for tax reasons with a T + 3 liquidation. . to settle on 12/31 “.
According to Lifchitz, last week’s volatility is largely due to poor market liquidity. He suggested that it would not be surprising “to see BTC climb back to $ 50,000 in the next few days … as well as dip to $ 46,000.”
If the bears manage to break below the $ 46,000 support and complete the large head-and-shoulders pattern that is forming on the BTC chart, Lifchitz suggested that “the next stop could ultimately be as low as $ 30,000.” , but stated that “we are still a long way from that and overly obvious technical patterns tend not to complete as expected.”
As for the bullish levels, Lifchitz pointed to $ 52,000 as “the main hurdle that BTC has already missed twice.” What’s more
“In case that resistance is overcome, the next highs on the upside are the region of $ 60,000 and then the ATH of $ 70,000.”
A final word of caution was offered by Lifchitz regarding Mt. Gox’s upcoming distribution of 146,000 BTC during the first half of 2022, which the CIO sees as having “the potential to shuffle the cards in a big way.”
No need to panic
Reassuring words for those traders who are concerned about BTC’s most recent drop below $ 46,000 were voiced by cryptocurrency trader and pseudonymous Twitter user ‘Devchart’. Public The following chart showing that Bitcoin has been trading in a clearly defined range for most of December:
Devchart explained:
“Zoom out and you’ll see we’ve just returned to the bottom of the same range that we’ve been hovering in since December 3. Don’t panic until we get out of this range.”
A similar perspective was offered by market analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following tweet indicating that there could be some short-term weakness in the market before finally heading higher.
Pretty boring markets lately. Just a process of bottoming out for #Bitcoin.
We’re retesting USD46K as support, bounced, but we might need to take the liquidity beneath the lows before we’re going to make some upwards runs again.
– Michaël van de Poppe (@CryptoMichNL) December 30, 2021
Total cryptocurrency market capitalization currently stands at $ 2.237 trillion and Bitcoin’s dominance index is 40.4%.
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