Bitcoin tests yearly moving average as $100K by Christmas needs ‘small miracle’

Bitcoin (BTC), a cryptocurrency, prepared a showdown on Dec. 19, with a key price trend (MA) on Dec. 19. Time is running out for a strong close in 2021.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

“I vote that we bounce and remain bull.”

Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD traded at $47,000 on Sunday. This is still an established range.

This price is currently at the location of Bitcoin’s one-year MA trendline. It is an important historical line that has allowed significant upside if BTC/USD keeps it as support.

Philip Swift, creator and editor of the on-chain data resource Look Into Bitcoin commented, “The 1yr MA was a pretty significant bitcoin bull/bear level historically and we’re sat right now on it.”

“I vote that we bounce and remain bull.”

BTC/USD 1-week candle charts (Bitstamp), with 52-week MA. Source: TradingView

Even if there was a bounce, there would be a lot of ground to make up for the loss in order to achieve an end-of year closing price that is at least slightly higher than previous bullish expectations.

PlanB, the stock-to-flow model inventor, is one of them. He admitted that he was unlikely to reach his $100,000 target for 2021 at the weekend.

He said that he wouldn’t be abandoning his models, even though they are valid in spite of recent events.

A small miracle is needed for Bitcoin to be 100K Christmas. If this doesn’t happen, will I abandon the S2F model? Nah. I like the lower bands. In fact, I published the model at lower bands in March 2019, with btc under 4K. pic.twitter.com/L1m0jFGNYM
— December 18, 2021, PlanB (@100trillionUSD).

This year, there is no “Santa rally” in macro

Traditional markets have also been affected by the unusual ending of 2021, with last week’s classic Santa rally absent.

Related: An analyst lists 21 factors that could lead to Bitcoin’s price rising — but only 4 bearish signals

Although the comments from the United States Federal Reserve gave a temporary performance boost, overall progress was slow compared to earlier this year.

Holger Zschaepitz, a market commentator, concluded that “Look as though mkts are not staging typical Santa Rally.”

Global stocks lost $1.8tn in mkt caps this week as investors responded to the hawkish Fed pivot and spike in Covid cases. They now find themselves in 2022 at already-elevated valuations. Stocks are still worth $118tn (140% of global GDP).

The outlook for the future was not better, as the Coronavirus Omicron variant triggered new economic shutdowns that will continue into the new year.

https://cointelegraph.com/news/bitcoin-tests-yearly-moving-average-as-100k-by-christmas-needs-small-miracle