As the year draws to a close, there is massive uncertainty about the cryptocurrency market. Investors are unsure of the next move that bitcoin would make. Since December 4, after the massive crash, bitcoin has fluctuated on the daily market with no clear direction. BTC price ranged between $42,000 to $49,000.
Analysts have predicted a generally bearish crypto market as the year ends, but they are also mindful of a possible massive bullish trend in the new year. But if that happens, several important things must happen to convince more bulls to enter the market. As the week begins and the year draws to a close, there are five key things to watch in bitcoin.
Bullish Reversal or Bearish Continuation?
Data from TradingView shows bitcoin forming a pin-bar and a Doji on the daily chart. But on the 4H chart, bitcoin is forming a Doji around the $46,246 zone. Is there a bullish reversal pattern indicating a possible recovery? Analysts believe differently. With bears having the upper hand for weeks now, bitcoin is likely to continue its bearish trend as it seeks bottom.
The $42,000 support zone that bitcoin hit on November 29 might be the key to forcing a bullish reversal. On the weekly chart, bitcoin is forming a strong bearish candle after last week’s candle ended bearish, showing that the bears might still be in control. Amidst tepid risk appetites, bitcoin might fall to its latest support but may not go lower.
Bitcoin Miners Showing Incredible Faith
Although the bitcoin market is bearish, bitcoin miners are holding the fort by hodling their mining profits. Data from Glassnode shows that for the first time in three months, bitcoin miners have sold the lowest amount of mining profits. General market sentiment doesn’t seem to affect bitcoin miners as they show strong faith in hodling instead of going bearish.
It is a special and noteworthy event because the last five months have been tough on bitcoin miners. From facing uncertainty about the regulation of bitcoin mining to facing increasing energy prices, and being on the receiving end of criticism about the environmental impact of bitcoin mining.
GBTC Reaches Biggest Ever Discount
Grayscale Bitcoin Trust (GBTC) is currently trading at a massive 20% discount. GBTC is the largest bitcoin investment vehicle through which investors gain non-custodial exposure to bitcoin investments. That GBTC is trading at a 20% discount when bitcoin is currently bearish under $47,000 has investors and analysts worried about the future of bitcoin.
Data from Coinglass shows that GBTC reached a high discount of 22.95 on December 18. According to a Twitter user, @tonald_dusk, it indicates that “nobody” is interested in GBTC investment.
Bitcoin goes into the final week of the year with strong bearish sentiment that has been fuelled by regulatory concerns and concerns about the rampant omicron coronavirus strain. Whether bulls eventually take control and move bitcoin back towards $60,000, the world’s first token is expected to dip some more as the year ends.