The weekend is upon us and fear remains the dominant short-term sentiment in the crypto market. Early today Bitcoin (BTC) the price dropped to $ 47,250 and investors are biting their nails after US consumer price index (CPI) data. Forty-year high at 6.8%.
Data of Cointelegraph Markets Pro Y TradingView shows that a midday push by the bulls to claim the $ 50,000 support level was easily defeated and sellers sent the price back below $ 48,000, which could possibly force another lower daily high for the cryptocurrency. best ranked.
With the prospect of a big price hike to end the year in near disappointment, traders have turned their attention to managing risk and identifying the best levels to buy declines. Here's a look at what analysts are saying about Bitcoin's outlook heading into 2022.
The elimination of open interest "will lead to more advantages"
As seen in previous instances where the price of BTC experienced a rapid decline, there has been a significant decline in BTC's open interest (OI) on derivatives exchanges, as highlighted in a recent Delphi Digital report. The report noted a 50% decline in OI after this latest market slowdown as long over-leveraged positions were decimated.
While the experience was likely off-putting for traders who were overexposed, analysts suggested deleveraging events like this are beneficial in the long run and will often "give way to a bigger advantage" as foam and excess former exuberance are replaced with a more measured business environment.
The sharp reduction in OI over the last month may also be indicating that the short-term bottom for BTC may be in according to Delphi Digital, and the current sell may be reaching the point of exhaustion.
Delphi Digital said:
"The 30-day% decline in OI for BTC has reached levels that previously indicated a bottom was forming (or not too far off)."
Limited range trading for BTC until 2022
According For Ben Lilly, co-founder of Jarvis Labs, the price of Bitcoin "is likely to remain in this trading range until at least the end of the month", mainly due to the fact that December 31 marks "the highest open interest in terms of open contracts ".
Lilly highlighted previous instances of major drawdowns that resulted in a large number of sell-offs as part of the rationale and explained that the market has typically taken some time to build momentum after these drawdowns.
Lilly said,
"Fortunately for anyone looking to accumulate weekly or at the bottom of the current trading range, this is a great setup."
Related: Trader Who Called Bitcoin Price Drop In 2017 Raises 'Double Top' Concerns
Should traders look for the continuation of the uptrend?
Twitter pseudonymous analyst and analyst 'Rekt Capital', who aware The following BTC price quote chart between two key exponential moving averages.
Rekt Capital said:
“Overall, BTC is consolidating within the two key EMAs right now. As in May 2021. And as in May ... Continued price stability and consolidation between these two EMAs will precede the continuation of the new macro bullish trend. "
The overall cryptocurrency market capitalization is now $ 2.238 trillion and Bitcoin's dominance rate is 40.7%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.
Post navigation
