Bitcoin (BTC), which dropped almost $4,000 on December 28, was a stark reminder that the bull market would have to wait.
BTC analysts eye $44,000
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD hit lows of $48,335 via Bitstamp on Tuesday’s Wall Street Open.
The pair had reached $52,000 on the previous day. This was a three-week high before sellers put pressure on it.
Bitcoin was at $49,000 at the time of writing. Traders took this opportunity to remind the public of Bitcoin’s continuing active range.
“Humans are bullish on resistance. Scott Melker stated, “It’s a fact.”
“Still ranging. “None of this has changed.”
The $52,000 trip did not attack any of the previously identified turning points, including $53,000 — Bitcoin’s $1 Trillion market cap.
Pentoshi, a popular trader, identified $44,000 as a possible floor in the event that the downward trend accelerates. Based on the recent behavior, a similar outlook was offered for slightly longer time frames.
BTC 4hr – Fulcrum, around which the price has been pivoting. Bounce or return to the bottom? pic.twitter.com/BTJR5rN87I
— Nunya Bizniz (@Pladizow) December 28, 2021
However, if you look out, there are bearish concerns. Blockware’s lead insights analyst William Clemente identified the possibility of a repeat of 2017’s all-time high, which resulted in a whole year of bear markets.
He warned that BTC would be judged in tweet comments.
Concerns loom over miracle equities readouts
The S&P 500 reached its 69th highest point of the year, putting Bitcoin in contrast to macro Tuesday.
Related: Bitcoin hodlers who are veterans still sell record amounts of BTC, despite 70% gains in 2021
Stock market exuberance was almost a record by itself. However, pundits were already concerned about the possibility of a disconnect between numbers and empirical reality.
To put things in perspective, the S&P 500 could close today at another Ath, which would make it the 69th Ath this year, 2nd only to 77 ATHs back in 1995. However, the average S&P 500 comp has fallen 18% from its Ath, which suggests that there is a lot of weakness beneath the surface. pic.twitter.com/3RsPFP1Ajs
— Holger Zschaepitz (@Schuldensuehner) December 27, 2021
Cointelegraph reported that the U.S. Federal Reserve would play a major role in shaping the market climate for Bitcoin’s performance in 2022.
BTC/USD is currently experiencing a holiday season with low liquidity and therefore high volatility.