Bitcoin initiates a fresh week with caution as it lingers below $41,080, a zone raising concerns amid recent whale-driven sell-offs. The latest weekly close, lacking a substantial bullish trend, fails to pacify anxious traders amid a halt in consistent upward Bitcoin price movements.
As the yearly candle races to its conclusion in a mere two weeks, the pressure mounts across various risk assets. With significant macroeconomic data releases slated for December’s remainder, the impending United States GDP release looms large, especially following the Federal Reserve’s recent actions.
The likelihood of a traditional “Santa rally” for Bitcoin appears dimmer, aggravated by elevated transaction fees prompting dissatisfaction among hodlers. Analysts advocate shifting focus to a potential spot ETF approval in the upcoming month.
Market sentiment shows “greed” prevailing, yet it doesn’t signal unsustainable conditions, leaving a potential window for upside movements as the market navigates through a phase of “disbelief.”
Analyzing these dynamics, Cointelegraph delves deeper into the factors influencing Bitcoin’s yearly price performance as the crucial juncture nears.
Key support levels for BTC prices are a pivotal consideration as the December 17 weekly closure emerged amid a localized Bitcoin sell-off around $41,300. Subsequently, Bitcoin dipped to $40,800 but rebounded above $41,000 during the Asian trading session, as reported by Cointelegraph Markets Pro and TradingView.
Given recent price actions, traders and analysts remain wary of possible further downward trends. Material Indicators, a trading resource, emphasized the loss of Bitcoin’s 21-day moving average at the onset of the week—an aspect considered “inherently bearish.” Forecasts anticipate year-end profit-taking and tax loss harvesting to persist shortly.
Keith Alan, co-founder of Material Indicators, highlighted the ongoing struggle concerning a crucial Fibonacci retracement level linked to Bitcoin’s all-time high in November 2021. This ongoing battle adds another layer of uncertainty to the current market sentiment surrounding Bitcoin.
