Bitcoin Resists $50,000! Main Market Indicators This Week
After falling below $42,000, Bitcoin (BTC) kicked off the new week with a modest recovery. However, resistance at the $50,000 level remains quite strong.
Given the market situation, analysts are not only beginning to gradually come to terms with the fact that the end of the fourth quarter of 2021 is unlikely to bring the explosion they want, but also began to fear that there may be a deeper BTC price lower limit before a real recovery occurs.
Analysts’ forecasts for the end of 2021 about the unprecedented growth of Bitcoin melted like snow in the spring. Therefore, many are now hoping for the first quarter of 2022.
The focus will be on derivatives markets when it comes to the sustainability of price recovery.
Following Bitcoin’s plunge on Friday, the futures open dropped to levels last seen in September.
Michael van de Poppe noted that Bitcoin is facing a giant futures gap this week that may not close right away.
As derivatives traders only increase downside pressure over the weekend, futures may nevertheless be a target for positive momentum.
BTC/USD could well rally to fill this gap, paving the way for a $50,000 return in support.
The analyst added that the gap could be up to $53.5 thousand.
However, Bitcoin’s plunge closed the previous gap that appeared at the end of November.
Danny Scott, CEO of CoinCorner exchange, believes that the decrease was caused by the attraction and elimination of players, and the market sentiment is still bullish. Scott hopes 2021 will end with a boom, not a bust.
Meanwhile, the Crypto Fear & Greed Index underscores the shock to many market participants: 16/100 stands for “extreme fear”. This is the lowest since July.
The panic among spot traders as it plunged below $42,000 did not affect key Bitcoin network activity. The hashrate, a measure of the computing power allocated to the network, remains near a record, according to popular resource MiningPoolStats.
The blockchain’s seven-day average is currently 162 exahashes per second (EH/s), which is 18 EH/s less than in May, when the pre-Chinese smash record was reached.