Bitcoin hits lows since 'flash crash' and seeks momentum for a bullish year-end close
By Noemi Jansana / Alejandra Zamora
Date: Monday 20 Dec 2021
(Sharecast News) - Bitcoin and Ethereum enjoyed a relatively quiet weekend, as volumes and volatility dropped, while the price of the number one digital currency hit a low of around $4,500. This figure is the cryptoasset's worst one since the December 4th 'flash crash' and could result in difficulties to achieve a bullish year-end close. Bitcoin´s trading is below $47,000 on Monday.
After a mind-blowing 2021, investors still believe Bitcoin has a chance to stage a Christmas rally. However, they remain far from the predictions of reaching $100,000 by December 31st, as they are now content if it manages to cap the year above $50,000. At the moment, it´s anchored in a narrow range between $46,000 and $48,000, while analysts warn that it faces the annual moving average.
If Bitcoin manages to hold this trend line, at $47,000, as indicated by 'CoinTelegraph', experts point to a bull run, as bounces at this level historically have translated into long-term rallies.
"Bitcoin printed some bullish daily candles last week, but its overall price structure did not change significantly: the descending wedge pattern remains in place," indicated Alejandro Zala, country manager of Bitpanda in Spain.
Ethereum does not present a very different picture and leaves behind a weekend in which it broke the support at $3,900 - $4,000. "Ethereum is trading within a range and creating a descending wedge pattern. This pattern also occurred between May and July, and again between September and October," commented Zala.
The movements of note from the weekend were those by alternative cryptocurrencies ('altcoins'), as they had large movements, both positive and negative. The price of Avalanche (AVAX) fell down to 7% in the last 24 hours, while Terra (LUNA) peaked at $77.2 on Sunday, just below its all-time high recorded in early December.
As traditional markets open on Monday, investors, including cryptocurrency investors, will continue to watch how Omicron could affect economic activity globally.
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