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bitcoin descends to critical support levels – CVBJ

bitcoin descends to critical support levels – CVBJ
Written by publisher team

Key facts:

The Federal Reserve’s announcement of a possible rate hike sent rates lower.

Bitcoin has evolved into a digital store of value, says Goldman Sachs.

Mercados al día is an exclusive summary of the news driving the Bitcoin economy. It is pre-emailed to your subscriber list and then posted every Monday on CriptoNoticias. If you’d like the information in advance, sign up for the list here.

After ending 2021 with a 60% annual increase, Bitcoin has had an auspicious start to the year. In the first seven days of the year, the price rose from $46,900 to $41,874, a decrease of 9.7%.

The statements of the Federal Reserve, last Wednesday, January 5, about a possible increase in interest rates next March, and a decrease in the retail rate of 12%, were decisive in the price decline, CriptoNoticias reported.

Analyst and trader Michael van de Poppe was correct in predicting in a video on Monday on Day 3 that although the $46,000 level looked solid, bitcoin could lose this support and retreat to a new containment zone between $41,000 and $42,000. We also report it in this medium. For an analyst, this drop in price may be an opportunity for subsequent growth.

As reported by CriptoNoticias, the decline in the bitcoin price represents a reversal of levels reached at the end of September 2021, when the price began an upward recovery that was set to continue throughout October.

$900 million settlements after the collapse of Bitcoin

In the 24 hours following the January 5 crash, liquidation of long positions reached nearly $900 million, according to CriptoNoticias. Of the total of $889 million settled within 24 hours on Thursday 6, About 550 million USD in transactions with BTC and ETH, the cryptocurrency for Ethereum. Other liquidations showed more moderate losses such as Solana Case (SOL), $20, $26 million or XRP, $17 million.

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4 bullish signals in the bitcoin market

Analyst Willie Wu’s First Market Report, reviewed by CriptoNoticias, indicates there are indications that allow a look at the bullish first quarter in 2022. The maximum accumulation area according to the report.

While traders are holding their bitcoin, speculative traders have started buying. Source: charts.wobull.com

Woo notes that retail investors, those with less than 1 BTC, are also accumulating and taking advantage of the current prices to buy. On the other hand, speculative traders They were going to change the intensive sales strategy they had in December. I moved to the sales department.

Special Week Planner

One little-known metric on bitcoin is “sleep,” which is an indicator of inactivity related to the age of coins in circulation in a given period. On-chain data analyst David Puell created the idle flow meter, which results from dividing the market value of bitcoin by the annual idle.

Passive Flow is used to predict the price of BTC falling. Source: Alive_Crypto on Twitter.

At the moment, the passive flow has minimum values, similar to the one that occurred in March 2020, when the price of Bitcoin fell as the markets collapsed, due to the declaration of the Covid pandemic. The graph shows that The bottoms of this curve correspond to price dips and price cycle declines. In addition, there is a match between the extremes of the curve and the maximum price.

What is holding back institutional investing in Bitcoin?

Asset security and preservation are a major hurdle to investing in bitcoin, according to a survey by London-based investment firm Nickel Digital Asset Management.

The survey exposes the belief that volatility or a lack of regulatory clarity are among investors’ biggest concerns. For 79% of the investors surveyed, security is the main concern with regards to the bitcoin and cryptocurrency market.

Goldman Sachs Describes Bitcoin as a ‘Pure Cryptocurrency’

US investment bank Goldman Sachs, in its Digital Asset Overview report, identifies bitcoin as a valuable asset and a medium of exchange. It also gives the first cryptocurrency a “pure cryptocurrency” rating with unique characteristics compared to the rest of the digital assets.

The financial institution believes that the Bitcoin narrative has evolved into a digital store of value, Thanks to its rarity, safety and brand value attributes. The report also notes that bitcoin is beneficial “in countries with unstable currencies.”

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