The Santa Claus Rally May Be Canceled. What To Expect From Bitcoin This Week?

Bitcoin (BTC) kicked off the week with a fresh wave of bearish pressure, contrary to the expectations of many traders who were hoping for a Santa Claus rally. But there are several triggers that will help BTC / USD move higher for the new year.

At the moment, analysts’ attention is drawn to a potentially volatile “bottom” of the market, as BTC is trading in the region of $46,000, and the bulls have not yet managed to raise the price above the desired $50,000.

Small retail investors waste no time buying Bitcoins, but experienced traders look forward to lower levels.

The popular trader Pentoshi cited the example of large traders on the Bitfinex exchange, who, in his opinion, expect the day at the level of 42-46 thousand dollars.

His colleague Galaxy, on the other hand, is more optimistic and inclined towards a “green week” led by altcoins.

The Decentrader trading platform is looking at Bitcoin’s Advanced NVT indicator as a possible springboard to reach higher price levels.

According to platform analysts, “BTC is now at a key decision point, so it would be wise to carefully manage your risk until a clear trend emerges.”

Miners are also reluctant to sell their Bitcoin holdings at current prices yet. According to Glassnode, miner churn has almost halved in just a month, confirming the shift in market dynamics from all-time highs.

Some analysts believe that macro volatility will continue in 2022.

Blanke Schein Wealth Management’s chief investment officer Robert Schein told Bloomberg that investors should be prepared for Covid to remain the main driver of the markets in 2022.

In addition, the US dollar is returning to strength, which could affect the Bitcoin exchange rate, as BTC usually correlates with the dollar.

The US Dollar Currency Index (DXY), which measures the dollar’s strength against a basket of major trading partners’ currencies, is at 96.6 at time of writing, almost hitting 97 at the end of last week.

According to the Crypto Fear & Greed Index, the sentiment around the cryptocurrency is negative. As of Monday, the index was in the “extreme fear” zone – 25/100.

However, popular trader and analyst, Rekt Capital, believes that such extreme fear precedes financial opportunity.

“This current BTC Down Channel reminds me of the BTC Down Channel that formed in May,” he added on Sunday, referring to the post-mining ban in China, where BTC / USD turned 50% and Fear & Greed several times sank to the bottom 10/100.

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