Bitcoin gains after $46K drop as ‘bottoming out’ continues into 2022

Bitcoin
(BTC)
recovered
from
fresh
lows
on
Dec.
30
as
markets
remained
undecided
on
their
end-of-year
trajectory.


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

$46,000
may
not
mark
floor

Data
from

Cointelegraph
Markets
Pro

and

TradingView

showed
BTC/USD
bouncing
to
$47,731
on
Bitstamp,
reversing
almost
all
of
the
previous
day’s
losses.

Prior
to
the
Wall
St.
open,
the
pair
was
still
above
the
$47,000
mark,
as
traders
nonetheless
warned
that
choppy
BTC
price
action
was
not
yet
over.

“Pretty
boring
markets
lately.
Just
a
process
of
bottoming
out
for
Bitcoin,”
Cointelegraph
contributor
Michaël
van
de
Poppe

summarized
.

“We’re
retesting
$46K
as
support,
bounced,
but
we
might
need
to
take
the
liquidity
beneath
the
lows
before
we’re
going
to
make
some
upwards
runs
again.”

That
liquidity
lay
between
$44,000
and
$45,000
on
the
day,
with
Bitcoin
having
firmly
reestablished
its
range
bounded
by
resistance
at
$53,000
and
above
earlier
in
the
week. 

Against
a
low-liquidity
holiday
backdrop,
the
potential
for
sharp
moves
up
or
down
remained.

“Alongside
an
elevated
possibility
of
a
leverage
squeeze,
we
also
have
a
general
decline
in
trading
volume,”
on-chain
analytics
firm
Glassnode
noted
in
the
latest
edition
of
its
weekly
newsletter,

The
Week
Onchain
.

“Quieter
trading
activity
is
typical
towards
years
end,
however
on
a
7-day
average
basis,
futures
market
volumes
have
seen
a
YTD
decline
of
16%.
Thinner
volume,
and
rising
open
interest
(in
a
concentrated
exchange)
is
a
combination
that
can
be
favourable
to
at
least
a
localised
leverage
squeeze
over
the
coming
weeks.”

That
squeeze,
veteran
trader
Peter
Brandt

argued

this
week,
is
yet
to
happen.

Not
all
quiet
among
traders

As
Cointelegraph

reported
,
it
was
macro
markets
were
making
the
headlines
after
Christmas
with
fresh,
if
dubious,
all-time
highs.



Related: Bitcoin
‘died’
45
times
in
2021
as
media
still
eager
to
post
BTC
obituaries

At
the
same
time,
institutional
interest
in
Bitcoin
appears

comparatively
low
,
characterized
by
the
underwhelming
performance
of
the
U.S.’s
first
Bitcoin
futures
exchange-traded
fund
(ETF).

“Total
open
interest
in
futures
has
almost
doubled
this
year,
rising
by
$9.57B
(97%)
to
a
total
of
$18.87B.
This
week
alone
has
seen
an
increase
of
some
$2.5B
in
open
interest,
primarily
led
by
traders
on
Binance,”
Glassnode
nonetheless
observed.


Bitcoin
futures
open
interest
chart.
Source:
Coinglass

Binance’s
BTC
balance
increased
throughout
December,
this
potentially
being
down
to

migrating

Chinese
users
from
Huobi
Global. 

read original article here