The year-end rally that many crypto traders have hoped for will have to wait until 2022, as Bitcoin (BTC) bears dominate on December 28 and BTC prices are $ 48,000 below support.
According to data from Cointelegraph Markets Pro and TradingView, the early morning sell wave broke through BTC support for $ 50,000, followed by a second wave early in the afternoon, the best before the Bulls could stop the spill. Cryptocurrency has been lowered to a low of $ 47,318 per day. ..
This shows what some market analysts are saying about the reasons behind this latest fix, and what to watch out for when 2021 is nearing its end.
Bearish RSI divergence before reversal
Insight into the technical reasons for the year-end revision of BTC prices was provided by option trader and pseudonym Twitter user John Wick. Post The following chart highlights the bearish “fake out” when Bitcoin prices begin to reverse.
Wick explained:
“We have formed a double top clearly defined by the bearish RSI divergence. Notice how the price behavior is on the uptrend while the RSI is on the downtrend. The bearish Alpha Thrust & Squeeze fake out. There was also.”
Could drop to $ 44,000
Bitcoin’s ongoing struggle with the 21-week Index Moving Average (EMA) is highlighted in the following chart from market analyst and pseudonym Twitter user Rekt Capital.Weekly chart show BTC struggled to exceed the technical indicators.
According to Rekt Capital, Bitcoin’s price action is similar to the scenario that occurred in May, “Bitcoin has undergone weeks of integration between the two bull market EMAs.” Prices could soon return to the $ 44,000 level. He continued:
“Historically, BTC ran a downward wick into the orange area during this red retest, so there is room for another return of orange.”
Related: Bitcoin’s daily loss is close to $ 4,000 as the S & P 500 reaches 69th place, the highest ever in 2021.
Waiting for a breakout of over $ 52,000
Analyst and pseudonym Twitter user Don Alto has suggested what traders should pay attention to in the coming days and weeks. Post The following chart shows that Bitcoin is in a “pretty clean downtrend so far”.
Don Alt has shown that it is rare to confirm that BTC continues to trade within these current levels. He is currently waiting for a clear break above the first red resistance zone on the chart above, which is close to $ 52,000. Don Alto explained further:
“I’m starting to expect a raging bull market to revive above $ 52,000 and above $ 60,000. Until one of these happens, I’m looking for a deep core and more exciting than the other. I’m going to concentrate on. “
The overall market capitalization of cryptocurrencies is currently $ 2.234 trillion and Bitcoin’s dominance is 40.3%.
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