Bitcoin fills $42K December price wick as analyst says ‘party just getting started’

Bitcoin
(BTC)
delivered
fresh
volatility
on
Jan.
6
as
rangebound
behavior
saw
its
first
shake-up
in
weeks.


BTC/USD
1-hour
candle
chart
(Bitstamp).
Source:
TradingView

Open
interest
remains
high

Data
from

Cointelegraph
Markets
Pro

and

TradingView
 showed
BTC/USD
dropping
overnight
to
hit
$42,000
for
the
first
time
since
December.

Although
not
the
upside
breakout
that
many
had
wanted,
the
move
was
nonetheless
predicted,
Bitcoin
essentially
“filling”
the
space
left
after
it
briefly

wicked
to
$41,800

early
last
month.

Those
lows
were
the
result
of
a
liquidation
cascade,
and
while
long
positions
also
felt
pain
this
time
around,
skepticism
remained
as
to
whether
the
revisiting
of
$42,000
had
been
enough
to
put
in
a
price
floor.

“Honestly
surprised
we
didn’t
see
more
of
a
flush
today
if
this
was
aggressive
longs
built
up.
Could
still
resolve
to
the
upside,”
analyst
William
Clemente

wrote

in
a
series
of
tweets
about
the
action.

“All
I
know
for
sure
is
that
this
party
is
just
getting
started.”

Clemente
was
among
those
already calling
for
more
volatile
conditions
 this
month
and
noted
that
the
majority
of
Bitcoin
futures
open
interest
(OI)
remained.
As
Cointelegraph
reported,
OI
had hit
all-time
highs
in
BTC
terms
 during
the
week.

As
ever,
those
zooming
out
found
comfort
and
familiarity
in
Bitcoin
price
action
versus
historical
behavior.

Fibonacci
levels
analyzed
by
fellow
analyst
TechDev
showed
that
Bitcoin
was
still
at
least
attempting
to
copy
patterns
built
up
from
previous
halving
cycles.

“Comparisons
to
past
cycles
aside,
price/indicator
action
and
volume
behavior
suggest
to
me
that
2021
was
effectively
a
year
of
consolidation
(similar
to
2019-Q3
2020)
and
that
is
likely
to
lead
to
another
market
impulse
before
the
next
major
correction,”
he

added

in
his
own
set
of
posts
as
the
market
began
to
dip.

Market
most
fearful
since
July
2021

For
the
average
retail
investor,
however,
it
looked
as
if
there
was
little
hope
left

at
least
on
the
day.



Related: New
year,
same
‘extreme
fear’

5
things
to
watch
in
Bitcoin
this
week

The

Crypto
Fear
&
Greed
Index

halved
during
the
dip
to
15/100

deep
within
the
Index’s
“extreme
fear”
zone
and
its
lowest
level
since
last
July.

At
that
time,
BTC/USD
traded
at
a
maximum
of
$33,000.


Crypto
Fear
&
Greed
Index.
Source:
Alternative.me

As
Cointelegraph
reported,
jitters
in
sentiment
were
already
palpable
as
2022
began.

read original article here