Categories: Bitcoin

Bitcoin daily losses near $4K as S&P 500 hits 69th all-time high of 2021

Bitcoin (BTC) dropped nearly $4,000 on Dec. 28 as the market offered a sharp reminder that the bull run would need to wait. 

BTC analysts eyes $44,000

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

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting lows of $48,335 on Bitstamp at Tuesday’s Wall Street open.

The pair had passed $52,000 the previous day, this marking a three-week high, before pressure from sellers halted progress.

At the time of writing, Bitcoin circled $49,000 as traders took the opportunity to remind audiences of Bitcoin’s ongoing active range.

“Humans get bullish at resistance. It’s a thing,” Scott Melker summarized.

“Still ranging. Nothing has changed.”

The $52,000 trip indeed failed to attack any of the price levels previously identified as turning points, notably $53,000 — Bitcoin’s $1 trillion market cap mark.

Popular trader Pentoshi meanwhile identified $44,000 as a potential floor should the downward trend accelerate. Slightly longer timeframes offered a similar outlook based on recent behavior.

https://twitter.com/Pladizow/status/1475840111459897346?ref_src=twsrc%5Etfw

Zooming out, however, and there were bearish considerations on the horizon. William Clemente, lead insights analyst at Blockware, identified a potential repeat of behavior immediately after 2017’s old all-time high which led to an entire year of bear market.

“Judgment day is coming for BTC,” he warned in Twitter comments.

Concerns loom over miracle equities readouts

Bitcoin thus presented a contrast to macro Tuesday as the S&P 500 hit its 69th all-time high of the year.

Related: Veteran Bitcoin hodlers are still selling record low amounts of BTC despite 70% gains in 2021

Almost a record in itself, stock market exuberance was already ruffling feathers among pundits concerned about a potential chasm between the numbers and empirical reality.

As Cointelegraph reported, the U.S. Federal Reserve will have a decisive role to play in shaping 2022’s market climate when it comes to Bitcoin’s performance.

In the meantime, however, BTC/USD faces a low-liquidity — and thus potentially high-volatility — holiday season.

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