2021 is drawing to a close, and institutional tax losses are putting pressure on Bitcoin prices

Time:2022-01-02 Source: 3608 views Trending Copy share

The BTC price retested its recent low of $46,000, as institutions appear to be “selling Bitcoin for tax reasons” and $52,000 remains the main obstacle on the path to higher prices.

2021 is a breakthrough year for the entire crypto market, despite the struggle at the end of the year that has caused the price of Bitcoin (BTC) to be pegged below US$48,000, which has led to major supporters who have been claiming that BTC will reach US$100,000. Feeling very annoyed.

Data from Cointelegraph Markets Pro and TradingView show that after a brief drop below US$46,000 in early trading on December 30, the past 24 hours has been like a roller coaster ride for this top cryptocurrency. The price of BTC has returned to more than US$47,500 before noon. .

The following are the views of several analysts in the market on the price trend of Bitcoin at the end of the year, as well as their expectations for 2022 as the large-scale application of blockchain technology and cryptocurrency continues to unfold.

The main resistance flipped to support

Market analyst and Twitter user Rekt Capital gave an analysis of Bitcoin price action on the monthly chart. He released the following chart, highlighting how BTC has turned the main resistance zone into support.

According to Rekt Capital, “BTC has turned the February, August, and September resistance levels into new support levels this month” and is looking for monthly candles to close above the green area shown in the above chart. Confirm that this is a new support level.

Regarding the level to be watched in the next few days, Rekt Capital is paying attention to the price level of $48,500 as a measure of the overall strength of BTC. The analyst believes:

"If BTC can regain support of about $48,500 by the end of this week, then BTC may retest the $52,000 resistance level again."

$52,000 is the biggest resistance level for BTC in the short term

ExoAlpha's managing partner and chief investment officer David Lifchitz provided insights on the year-end weakness of Bitcoin prices. He pointed the finger at institutional investors. They seemed to "sell for tax reasons, T+3 settlement... in Settlement on 12/31".

According to Lifchitz, the volatility in the past week was largely due to weak liquidity in the market. He suggested, "It will not be surprising to see BTC rise back to $50,000 in the next few days... and drop to $46,000."

If BTC eventually falls below the $46,000 support level and completes the large head-and-shoulders pattern formed on the BTC chart, Lifchitz believes that "BTC may eventually fall to $30,000 in the next step", but he said, "We are still far from this goal. Technical forms that are too obvious are often not completed as expected."

In terms of upside levels, Lifchitz pointed out that $52,000 is "the main obstacle that BTC has failed twice." He further pointed out:

"If this resistance is overturned, the next upside stop loss will be the $60,000 area, and then the $70,000 ATH."

Finally, Lifchitz warned the upcoming Mt.Gox to allocate 146,000 BTC in the first half of 2022. The CIO believes that this "may be reshuffled."

No need to panic

For those traders who are worried that BTC has recently fallen below US$46,000, cryptocurrency traders, and Twitter user Devchart expressed some views on stability. He published the following chart, which shows that Bitcoin has been trading within a clear range for most of December.

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