Less Than 5 Days Until the Annual Close. What to Expect From Bitcoin This Week?

Bitcoin (BTC) opened the last week of 2021 at a position of around $51,000. The market situation did not live up to the expectations of those who had hoped that the rate would go up to $100,000 or more.

Over the weekend, there was nothing unusual about price movements, with a short-term drop below $50,000, but Bitcoin subsequently returned to gains.

According to TradingView, at the time of writing, $51,000 has been forming focus again, with limited up or down action.

Filbfilb analyst, a co-founder of the Decentrader trading platform, has warned despite multiple bullish signals over Christmas that current BTC / USD levels could be something of a trap.

Everyone knows that the PlanB analyst, at the beginning of November 2021, predicted that the Bitcoin rate would rise to $100,000. He also stated that if Bitcoin trades below the specified value, he will abandon any models in the future.

Subsequently, he admitted that his model, which had worked for many years for Bitcoin, was no longer valid.

To clarify the situation this week, it is also necessary to look at Bitcoin derivatives. In early December, open interest in futures began to grow. According to filbfilb, the combination of increasing open interest in futures and the falling price of Bitcoin could lead to painful losses in the future.

However, such concerns have subsided after excessive leverage from the derivatives markets disappeared as a result of the collapse in prices.

Meanwhile, on-chain indicators regulating the behaviour of buyers and sellers are showing signs of a possible improvement in the situation.

On-Chain College analyst on Twitter, who showed data from analyst firm Glassnode, said sellers could be exhausted and potentially more dramatic if buyers step in.

Closer to the holidays, US stock markets hit new record highs. The S&P 500 alone set 68 new records.

But the US dollar has not yet recovered its uptrend, and the US dollar currency index (DXY) is pushing ahead for the rest of the year.

By the end of the year, Bitcoin traders remain quite scared. According to the Crypto Fear & Greed Index, the market remains very lively. At the time of writing, the index is at 40/100, which characterizes “fear”. Last week, this value peaked at 45/100.

This suggests that the sentiment of traders remains highly sensitive to any changes in the price of Bitcoin, especially after the crash.

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