2021 has been a breakout year for the cryptocurrency market as a whole despite the year-end struggles that have kept the price of Bitcoin (BTC) pinned below $48,000, much to the chagrin of the cadre of folks who had been calling for a $100,000 BTC moonshot.
Data from Cointelegraph Markets Pro and TradingView shows that the past 24 hours have been a rollercoaster ride for the top cryptocurrency after a brief dip below $46,000 in the early trading hours on Dec. 30 was quickly bought up to push the BTC price back above $47,500 by midday.
BTC/USDT 4-hour chart. Source: TradingView
Here’s a look at what several analysts in the market are saying about the year-end price action for Bitcoin and what to expect in 2022 as the mass adoption of blockchain technology and cryptocurrencies continues to unfold.
Major resistance flips to support
Analysis of Bitcoin price action on the monthly chart was discussed by market analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart highlighting how BTC has flipped a major resistance zone into support:
BTC/USD 1-week chart. Source: Twitter
According to Rekt Capital, “BTC has turned the February, August and September resistance into new support this month” and is looking for a monthly candle close above the green zone shown in the chart above to confirm this as a new support level.
Regarding levels to watch in the days ahead, Rekt Capital is keeping an eye on the $48,500 price level as a gauge for the overall strength of BTC. The analyst said:
“If BTC is able to reclaim ~$48500 as support by the end of the week then BTC could once again revisit ~$52000 resistance.”
$52,000 is the biggest short-term hurdle for BTC
Insights into the year-end weakness of Bitcoin’s price were offered by David Lifchitz, managing partner and chief investment officer at ExoAlpha, who pointed the finger at institutional investors who appear to be “selling for tax reasons with a T+3 settlement… to settle on 12/31.”
According to Lifchitz, the volatility of the past week is, in large part, due to weak liquidity in the market. He suggested that it wouldn’t be surprising to…