Bitcoin starts 2022 at $47.2K as fresh research pins performance on China trader exodus

Bitcoin
(BTC)
bears
lost
out
at
the
last
minute
as
2021
came
to
an
end

and
consensus
is
building
around
China
again
being
the
reason
for
weakness.


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

China
“last
hammer”
could
now
provide
optimism
on
BTC

Hours
before
the
yearly
close,
BTC/USD
dived
$2,000
to
lows
of
$45,630
on
Bitstamp
before
a
modest
recovery
drew
a
line
under
2021
at
$47,200,
data
from

Cointelegraph
Markets
Pro

and

TradingView
 shows.

While
something
of
an
anticlimax
and
far
below
many
popular
projections,
the
lack
of
parabolic
upside
for
Bitcoin
has
recently
seen
explanations
shift
to
exchanges.

Chinese
users,
following
years
of
the
government
tightening
the
screws
around
crypto
trading,
had
until
Dec.
31
to
leave
the
major
Chinese
exchanges,
which
were
obliged
to
deregister
them.

For
Bobby
Lee,
former
CEO
of
exchange
BTCC,
this
constitutes
the
“last
hammer”
in
Beijing’s
arsenal
and
one
which
could
have
been
having
a
considerable
impact
on
selling
behavior.

“Maybe
that’s
why
the
hotly
anticipated
year
end
bull
market
hasn’t
taken
off
yet,”
he
argued
in
a

series
of
tweets

on
the
matter
in
early
December.

“Waiting
for
the
last
hammer
to
drop
in
China!
Expect
a
mini-correction
when
the
enforcement
news
gets
out,
and
then
a
relief
rally
that
could
bring
us
back
on
track
for
a
real
Bitcoin
bull
market.”

Other
voices

supported
the
theory
,
while
this
week,
Blockstream
also
acknowledged
the
possible
pressure
from
offloading
Chinese
users,
who
could
be
selling
their
BTC
in
order
to
withdraw
capital

leading
to

rising
balances
.

It’s
also
a
potential
reason
for
optimism
going
forward
as
the
Chinese
exchange
overhang
will
be
cleared
from
the
end
of
this
month.

“I
think
this
probably
explains
why
we’ve
seen
Bitcoin
typically
trade
weaker
over
Asia
hours
vs
US
and
European
hours,”
Blockstream
analyst
Jesse
Knutson
wrote
in
the
firm’s
latest

weekly
newsletter
.

“It’s
also
a
potential
reason
for
optimism
going
forward
as
the
Chinese
exchange
overhang
will
be
cleared
from
the
end
of
this
month.” 


Bitcoin
exchange
BTC
balance
chart.
Source:
Coinglass

Staying
cool
on
holiday
volatility

On
shorter
timeframes,
thin
holiday
liquidity
could
provide
another
reason
to
discard
price
dips
like
the
one
seen
Friday.



Related: First
US
Bitcoin
ETF
a
‘dud’
in
2021
as
GBTC
discount
stays
near
record
lows

Prior
to
the
return
of
Wall
Street
and
institutional
traders,
BTC
price
action
overall
may
provide
an
unreliable
impression
of
how
the
market
will
perform
subsequently.

2022,
one
forecast
this
week

said
,
should
see
a
major
“flippening”
of
Bitcoin
ownership
in
favor
of
large-volume
institutional
traders
and
away
from
retail.

read original article here