Institutional tax-loss harvesting weighs on the Bitcoin price as 2021 comes to a close

2021
has
been
a
breakout
year
for
the
cryptocurrency
market
as
a
whole
despite
the
year-end
struggles
that
have
kept
the
price
of
Bitcoin
(BTC)
pinned
below
$48,000,
much
to
the
chagrin
of
the
cadre
of
folks
who
had
been
calling
for
a
$100,000
BTC
moonshot. 

Data
from

Cointelegraph
Markets
Pro

and

TradingView

shows
that
the
past
24
hours
have
been
a
rollercoaster
ride
for
the
top
cryptocurrency
after
a
brief
dip
below
$46,000
in
the
early
trading
hours
on
Dec.
30
was
quickly
bought
up
to
push
the
BTC
price
back
above
$47,500
by
midday.


BTC/USDT
4-hour
chart.
Source:
TradingView

Here’s
a
look
at
what
several
analysts
in
the
market
are
saying
about
the
year-end
price
action
for
Bitcoin
and
what
to
expect
in
2022
as
the
mass
adoption
of
blockchain
technology
and
cryptocurrencies
continues
to
unfold.

Major
resistance
flips
to
support

Analysis
of
Bitcoin
price
action
on
the
monthly
chart
was
discussed
by
market
analyst
and
pseudonymous
Twitter
user
Rekt
Capital,
who

posted

the
following
chart
highlighting
how
BTC
has
flipped
a
major
resistance
zone
into
support:


BTC/USD
1-week
chart.
Source:
Twitter

According
to
Rekt
Capital,
“BTC
has
turned
the
February,
August
and
September
resistance
into
new
support
this
month”
and
is
looking
for
a
monthly
candle
close
above
the
green
zone
shown
in
the
chart
above
to
confirm
this
as
a
new
support
level.

Regarding
levels
to
watch
in
the
days
ahead,
Rekt
Capital
is
keeping
an
eye
on
the
$48,500
price
level
as
a
gauge
for
the
overall
strength
of
BTC.
The
analyst

said
:

“If
BTC
is
able
to
reclaim
~$48500
as
support
by
the
end
of
the
week
then
BTC
could
once
again
revisit
~$52000
resistance.”

$52,000
is
the
biggest
short-term
hurdle
for
BTC

Insights
into
the
year-end
weakness
of
Bitcoin’s
price
were
offered
by
David
Lifchitz,
managing
partner
and
chief
investment
officer
at
ExoAlpha,
who
pointed
the
finger
at
institutional
investors
who
appear
to
be
“selling
for
tax
reasons
with
a
T+3
settlement…
to
settle
on
12/31.”

According
to
Lifchitz,
the
volatility
of
the
past
week
is,
in
large
part,
due
to
weak
liquidity
in
the
market.
He
suggested
that
it
wouldn’t
be
surprising
to
“see
BTC
back
up
to
$50,000
in
the
next
couple
of
days…
as
well
as
down
to
$46,000.”

If
bears
manage
to
break
below
support
at
$46,000
and
complete
the
large
head
and
shoulder
pattern
forming
on
the
BTC
chart,
Lifchitz
suggested
that
“the
next
stop
could
be
ultimately
down
to
$30,000”
but
stated
that
“we’re
still
far
from
that
and
too
obvious
technical
patterns
tend
to
not
complete
as
expected.”

As
far
as
upside
levels,
Lifchitz
pointed
to
$52,000
as
“the
main
hurdle
which
BTC
has
already
failed
twice.”
He
further
stated
that,

“Should
that
resistance
get
overthrown,
the
next
upside
stops
are
the
$60,000
region
then
$70,000
ATH.”

A
final
word
of
caution
was
offered
by
Lifchitz
regarding
the
upcoming
Mt.
Gox
distribution
of
146,000
BTC
over
the
first
half
of
2022,
which
the
chief
information
officer
sees
as
having
“the
potential
to
reshuffle
the
cards
big
time.”



Related:




Mt.
Gox
rehabilitation
plan
is
now
‘final
and
binding’

No
need
to
panic

Reassuring
words
for
those
traders
who
are
worried
about
BTC’s
most
recent
dip
below
$46,000
were
expressed
by
the
crypto
trader
and
pseudonymous
Twitter
user
Devchart.
He

posted

the
following
chart
showing
that
Bitcoin
has
been
trading
in
a
clearly
defined
range
for
most
of
December:


BTC/USDT
4-hour
chart.
Source:
Twitter

Devchart
explained:

“Zoom
out
and
you
will
see
that
we
are
just
back
to
the
bottom
of
the
same
range
we
have
been
oscillating
on
since
December
3rd.
No
need
to
panic
until
we
exit
this
range.”

A
similar
outlook
was
offered
by
markets
analyst
and
Cointelegraph
contributor
Michaël
van
de
Poppe,
who
posted
the
following
tweet
indicating
that
there
could
be
some
short-term
weakness
in
the
market
before
ultimately
heading
higher.

The
overall
cryptocurrency
market
cap
now
stands
at
$2.237
trillion
and
Bitcoin’s
dominance
rate
is
40.4%.

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