Bitcoin Tries to Break Above $50K: market indicators
The new week began for Bitcoin (BTC) with fresh attempts to break through the $50,000 resistance level.
There are just over 15 days left until the end of the year, and traders are beginning to wonder if the BTC / USD rate is likely to rise, especially when 90% of the total Bitcoin supply has already been mined.
Bitcoin attempted to climb to $50,000 on Sunday, according to TradingView, but failed to hold the position.
Popular analyst TechDev believes that the current movement of the Bitcoin rate is similar to the rate movement in the fourth quarter of 2020 just before the start of the way up.
Analyst PlanB is also optimistic about Bitcoin. In his opinion, Bitcoin has been in an extended consolidation phase for most of the year, so traders need to be patient.
According to the ING bank network, the meeting of the Federal Open Market Committee could provide valuable insight into the future impact on cryptocurrency markets.
“In the absence of objection from other Fed officials, despite the uncertainty presented by the emergence of the Omicron option, at next week’s meeting, it looks like the Fed will announce an acceleration of the quantitative easing cut, with a cut of $30 billion in January (to $60 billion). … purchases) and a further cut of $30 billion in February,” said ING.
“This would mean the Fed will complete the program by early March, leaving the Federal Reserve with $8.8 trillion in assets on its balance sheet – more than double its January 2020 level before the pandemic!”
According to former BitMEX CEO Arthur Hayes, the major changes to QE are effectively changing the availability of easy money, as well as impacting risky assets like Bitcoin.
Analyst Cole Garner published several charts on the popular social network, stating that the optimistic sentiment in the Bitcoin market may soon become reality.
He added that the main signal was the signal coming from the OTC tables. The BTC balances of several organizations have suddenly increased in the past week, which is in line with the buying activity among customers.
Another example is the combined volume delta (CVD) for Bitcoin whales. An upward slope of CVD is an unmistakable bullish sign, Garner said.
As always, not everyone was convinced, as the responses argued that a spike in OTC prices could be just a brief divergence in an overall downtrend.
However, institutional investors are showing no signs of abandoning BTC as a “risky” asset in the current environment. In addition, the demand for Bitcoin ETFs has increased.
Purpose Bitcoin ETF, Canada’s first licensed bitcoin spot ETF, increased its holdings by 4,342 BTC in December (+ 17.6%).
Last week, the Crypto Fear & Greed Index hit its lowest level since July at 16/100 or “extreme fear”. It then nearly doubled to 28/100 in one day and then dropped back to 16. And climbed back to 27 over the weekend.