Bitcoin Drops To Monthly Low As Year-End Approaches, More Impulsive Decline? – Cryptonium News

Bitcoin Drops To Monthly Low As Year-End Approaches, More Impulsive Decline?

Bitcoin approached the $17, 000 level on Tuesday. The digital coin fell to $16, 400, its lowest level in three weeks. As the end of the year approaches, BTC could experience high volatility and low liquidity.

Bitcoin surges.

Bitcoin surged to a temporary high of $16, 837 in today’s session, just 24 hours after hitting $16, 398. The cryptocurrency experienced an impulsive decline after a significant deviation from resistance levels.
The sharp decline was related to the daily plunge in the S&P;P 500 index and general nervousness about the Federal Reserve’s ability to raise interest rates.

BTC/USD traded at $16, 870 on the daily chart. Source: trading view

Given the reduced trading volume and liquidity, BTC could fall further toward the end of the year. This will cause volatility in the asset to spike.
Katie Stockton, founder of Fairlead Strategies LLC, predicted that BTC could retest its November lows and “fall nearly $15, 600 in the coming weeks.”

On November 8, 2021, BTC reached an all-time high of $68, 997. However, the major cryptocurrency underwent a major shift in market structure, hitting a weekly low of $32, 995 on January 24. This move confirmed the start of a bearish trend in the Market.

Potential Rally in BTC

As the dust from the collapse of FTX and FUD settles on Binance, bitcoin prices could begin a gradual recovery over the next few months, and according to Jim Wyckoff, “There is no short-term technical advantage for either the bulls or the bears.

This suggests that traders “will continue to see more volatile, sideways trading on the daily charts for the rest of the year unless a major fundamental shock hits the market.”

However, according to a tweet from Crypto Trader, PlanB, the next bitcoin half-life is in 15 months. With the U.S. Federal Reserve continuing to tighten monetary policy, prices will not rise for at least five months.

As macroeconomic conditions ease, BTC prices could come up for air.

Schroders, a global asset management firm, has proven that risky assets like Bitcoin have a nearly 80% chance of ending the year with positive returns.