Analysts warn that possible downside wick could push BTC price as low as $44K

It
looks
as
though
the
year-end
rally
that
many
crypto
traders
had
hoped
for
will
have
to
wait
until
2022,
as
Bitcoin
(BTC)
bears
gained
the
upper
hand
on
Dec.
28
and
hammered
the
price
of
BTC
below
support
at
$48,000. 

Data
from

Cointelegraph
Markets
Pro

and

TradingView

shows
that
an
early
morning
wave
of
selling
broke
through
BTC
support
at
$50,000
and
was
followed
by
a
second
wave
in
the
early
afternoon
that
dropped
the
top
cryptocurrency
to
a
daily
low
of
$47,318
before
bulls
managed
to
stem
the
outflow.


BTC/USDT
4-hour
chart.
Source:
TradingView

Here’s
a
look
at
what
several
market
analysts
are
saying
about
the
reasons
behind
this
latest
correction
and
what
to
look
out
for
as
2021
comes
to
a
close.

A
bearish
RSI
divergence
prior
to
the
reversal

Insight
into
the
technical
reasons
for
the
year-end
correction
for
BTC
price
was
offered
by
options
trader
and
pseudonymous
Twitter
user
John
Wick,
who

posted

the
following
chart
highlighting
a
bearish
“fake
out”
as
the
price
of
Bitcoin
began
to
reverse.


BTC/USDT
4-hour
chart.
Source:
Twitter

Wick
explained:

“We
formed
a
double
top
that
was
clearly
defined
by
bearish
RSI
divergence.
Notice
how
price
action
trends
up,
while
RSI
was
trending
down.
We
also
had
a
bearish
Alpha
Thrust
&
Squeeze
fakeout.”

Possible
dip
to
$44,000

Bitcoin’s
continued
struggles
at
the
21-week
exponential
moving
average
(EMA)
was
highlighted
in
the
following
chart
from
market
analyst
and
pseudonymous
Twitter
user
Rekt
Capital.
The
weekly
chart shows
the
difficulty
BTC
has
had
in
breaking
above
the
technical
indicator.


BTC/USD
1-week
chart.
Source:
Twitter

According
to
Rekt
Capital,
the
price
action
for
Bitcoin
is
similar
to
a
scenario
that
occurred
back
in
May
“whereby
Bitcoin
is
experiencing
a
multi-week
consolidation
between
the
two
bull
market
EMAs,”
and
the
price
could
soon
revisit
the
$44,000
level.
He
continued:

“Historically,
BTC
has
performed
downside
wicks
into
the
orange
area
during
this
red
retest
so
there’s
scope
for
another
revisit
of
orange.”



Related:




Bitcoin
daily
losses
near
$4K
as
S&P
500
hits
69th
all-time
high
of
2021

Waiting
for
a
breakout
above
$52,000

Suggestions
as
to
what
traders
should
be
on
the
lookout
for
in
the
days
and
weeks
ahead
were
offered
by
analyst
and
pseudonymous
Twitter
user
“Don
Alt,”
who

posted

the
following
chart
showing
that
Bitcoin
is
in
a
“pretty
clean
downtrend,
for
now.”


BTC/USD
1-day
chart.
Source:
Twitter

Don
Alt
indicated
that
there
is
not
much
to
see
with
BTC
continuing
to
trade
in
a
range
at
these
current
levels.
He
is
now
waiting
for
a
clear
break
above
the
first
red
resistance
zone
on
the
chart
above,
which
is
located
near
$52,000.
Don
Alt
further
explained:

“I
start
getting
hopeful
above
$52,000,
above
$60,000
the
raging
bull
market
is
back
on.
Until
either
of
those
happens,
I’m
gonna
look
for
deep
wicks
and
focus
on
other
more
exciting
things.”

The
overall
cryptocurrency
market
cap
now
stands
at
$2.234
trillion
and
Bitcoin’s
dominance
rate
is
40.3%.

The
views
and
opinions
expressed
here
are
solely
those
of
the
author
and
do
not
necessarily
reflect
the
views
of
Cointelegraph.com.
Every
investment
and
trading
move
involves
risk,
you
should
conduct
your
own
research
when
making
a
decision.

read original article here