Bitcoin lost the $ 47,000 support on Monday and hit December lows slightly below $ 46,000. In addition, it closed below that level, a bearish signal that may anticipate a further decline to $ 42,000.
The total capitalization also lost the barrier of 2.2 trillion dollars and barely exceeds 2.1 trillion, as investors withdraw from risk assets as they discount that the Fed makes public its decision to accelerate the reduction of its bond purchases and signal that interest rates will start to rise next year.
The low interest rate environment sent both equities and cryptocurrencies skyrocketing this year, a rate hike and a quicker-than-expected end to easy money policies could nonetheless cause the market to turn bearish. .
“Bitcoin fell back below $ 50,000 and has a hard time finding bullish momentum when the price rebounds”Said Craig Erlam, an analyst at Oanda. “Improving risk appetite did not even help the cryptocurrency, which could face a pullback to levels seen during the ‘flash crash’ earlier this month if $ 47,000 falls,” he added. The expert stated that an unexpected collective lowering of expectations of tightening from central banks “will get the crypto community excited again this week.”
In general terms, after the collapse in the crypto-asset market last November, investors are cautious in trading “cryptos” by losing important supports, many of them trading at the levels of last September. “In the next few hours it will be vital that Bitcoin, which ran into resistance at US $ 50,000, sustains US $ 46,000,” they said from IG Markets.
From the point of view of technical analysis “the problem in the short term is that anything can happen”Said José María Rodríguez, technical analyst at Bolsamanía. And he explained that “we have the king of cryptocurrencies in a nobody’s zone, halfway between the important support of US $ 40,000-US $ 41,500 (the minimum of September) and far from the resistance of the US dollars. $ 53,600 and let’s not talk about the $ 60,000 ”. “In very short-term terms, it has support around the corner at last week’s lows ($ 47,215) and resistance at last week’s highs ($ 52,195),” he said.
“And all of the above within a clear long-term upward trend in the background, which has not been threatened in the slightest,” assured Rodríguez, although the idea that another session of abrupt falls is gaining strength in the market. could hurt the medium-term trend despite oversold signs. “Unlike other market moments, no more or less clear potential pattern is observed”, Concluded the Bolsamanía expert.
Source From: Ambito
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