Bitcoin (BTC) dropped nearly $4,000 on Dec. 28 as the market offered a sharp reminder that the bull run would need to wait.
BTC analysts eyes $44,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting lows of $48,335 on Bitstamp at Tuesday’s Wall Street open.
The pair had passed $52,000 the previous day, this marking a three-week high, before pressure from sellers halted progress.
At the time of writing, Bitcoin circled $49,000 as traders took the opportunity to remind audiences of Bitcoin’s ongoing active range.
“Humans get bullish at resistance. It’s a thing,” Scott Melker summarized.
“Still ranging. Nothing has changed.”
The $52,000 trip indeed failed to attack any of the price levels previously identified as turning points, notably $53,000 — Bitcoin’s $1 trillion market cap mark.
Popular trader Pentoshi meanwhile identified $44,000 as a potential floor should the downward trend accelerate. Slightly longer timeframes offered a similar outlook based on recent behavior.
BTC 4hr:
Fulcrum around which price has been pivoting.
Bounce or back to the bottom of the channel? pic.twitter.com/BTJR5rN87I
— Nunya Bizniz (@Pladizow) December 28, 2021
Zooming out, however, and there were bearish considerations on the horizon. William Clemente, lead insights analyst at Blockware, identified a potential repeat of behavior immediately after 2017’s old all-time high which led to an entire year of bear market.
“Judgment day is coming for BTC,” he warned in Twitter comments.
Concerns loom over miracle equities readouts
Bitcoin thus presented a contrast to macro Tuesday as the S&P 500 hit its 69th all-time high of the year.
Related: Veteran Bitcoin hodlers are still selling record low amounts of BTC despite 70% gains in 2021
Almost a record in itself, stock market exuberance was already ruffling feathers among pundits concerned about a potential chasm between the numbers and empirical reality.
Just to put things into perspective: The S&P 500 may close today at another ATH, it would be the 69th ATH this year, 2nd most ever only behind 77 ATHs in 1995, but the average S&P 500 comp is down 18% from its ATH, suggesting a massive amount of weakness underneath the surface. pic.twitter.com/3RsPFP1Ajs
— Holger Zschaepitz (@Schuldensuehner) December 27, 2021
As Cointelegraph reported, the U.S. Federal Reserve will have a decisive role to play in shaping 2022’s market climate when it comes to Bitcoin’s performance.
In the meantime, however, BTC/USD faces a low-liquidity — and thus potentially high-volatility — holiday season.